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]
March 19, 2014
STATUS UPDATE # 34
NOTE: The Status Updates are cumulative. Please read all thirty-four updates.
Bankruptcy Court Action
The Bankruptcy Trustee has settled the Litigation against Berkshire Group L.P., Ocwen Loan Servicing, LLC and Michael W. Trickey. The only remaining Defendant is Greenwich Capital Financial Products, Inc. ("Greenwich"). The Bankruptcy Trustee is currently negotiating with Greenwich in order to settle the Bankruptcy Court adversary action. The Trustee believes he has a settlement in principal with Greenwich, subject to documenting the agreement.
Interest Only Strips ("I/O Strips")
The Interest Only Strips must be administered. The potential settlement with Greenwich could result in the Trustee obtaining possession of the I/O Strips. The tax ramifications, if any, in the Trustee's opinion have a priority for payment which precedes any payment to general unsecured creditors.
The Trustee is in the process of analyzing the final group of claims and will determine if any claims are objectionable. Claim objections will be filed with the Bankruptcy Court to the extent necessary.
The Trustee anticipates paying an Interim Distribution pursuant to the priorities of the Bankruptcy Code after the quantification of any liabilities which arise from the I/O Strips transactions are determined.