George L. Miller, Trustee

Eight Penn Center, Suite 950

1628 John F. Kennedy Boulevard

Philadelphia, PA 19103


Phone: (215) 561-0950

Fax: (215) 561-0330

Email: [email protected]



October 23, 2012




NOTE: The Status Updates are cumulative. Please read all thirty-two updates.


Bankruptcy Court Action


The Bankruptcy Court has issued Court Orders and opinions for the numerous Motions for Summary Judgments ("Motions") filed by Greenwich Capital Financial Products, Inc. ("Greenwich"), Berkshire Group LP ("Berkshire"), and Ocwen Loan Servicing, LLC ("Ocwen"). The Bankruptcy Court has sustained a substantial portion of the Motions filed. Most of the Trustee's claims have been dismissed by the Bankruptcy Court for the defendants, Berkshire and Greenwich. The Trustee is continuing to prosecute the lawsuit against Ocwen and would anticipate a trial date in the summer or fall of 2013.


Noteholder Claims


As noted in Status Update #31, the Bankruptcy Court signed an Order approving the proofs of claims filed by the Indenture Trustees and determined that the rights of the individual collateralized noteholders to receive distributions are governed by the terms and conditions of the Trust Indenture Agreements.


The Bankruptcy Trustee has recently paid an additional distribution of $2,562,568.89 to Wells Fargo and Law Debenture, the Indenture Trustees for the Senior Collateralized Noteholders bringing the total distribution from the bankruptcy estate to $40,000,000 or 41.7% of the allowed Senior Collateralized Noteholder Claims.


No distributions have been paid to U.S. Bank. Any distribution to U.S. Bank will be made along with distributions to general unsecured creditors.


The Bankruptcy Trustee estimates that the Indenture Trustees for Senior Collateralized Noteholders and the Unsecured Noteholders should receive a distribution on the unsecured portion of their Proofs of Claim. However, the Bankruptcy Trustee cannot estimate the amount or timing of the distribution. Please contact your Indenture Trustee identified in Status Updates #29 and #31 with questions from noteholders regarding the distributions for the Trust Indenture Agreements.


Chapter 11 Administrative Claims


The Bankruptcy Trustee has filed a Motion For Entry Of An Order Pursuant To 11 U.S.C. §105(a) Seeking Authority To Pay Certain Chapter 11 Professional Fees And Chapter 11 Expenses ("Chapter 11 Motion"). The Chapter 11 Motion seeks permission for the Bankruptcy Trustee to pay approximately $4,100,000 in Chapter 11 professional fees and expenses.



Claims Reconciliation


There are approximately 2,500 proofs of claim filed by various creditors which are not claims of the Trust Indenture Agreements, Secured Creditors nor Chapter 11 claimants. The claims reconciliation process will determine the final claims for general unsecured creditors, exclusive of noteholder claims.