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]

 

 

September 4, 2014

 

STATUS UPDATE # 35

 

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

 

           

Bankruptcy Court Action

 

            The only remaining Defendant in the Bankruptcy Court action 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.

 

Potential Tax Claim

 

            The Trustee is investigating Potential Tax Claims by the Internal Revenue Service (“IRS”) for liquidation of certain mortgage backed securities during the Chapter 11 or liquidation by certain secured lenders.  The Potential Tax Claims may have priority over General Unsecured Creditors.  The successful resolution of the Potential Tax Claim should allow the Trustee to make an interim distribution to General Unsecured Creditors.

 

Interim Distribution

 

            The Trustee anticipates paying an Interim Distribution pursuant to the priorities of the Bankruptcy Code after the quantification of all liabilities is determined.  The Trustee estimates that all secured, Chapter 11 and priority claims will be paid in full and a pro rata distribution to General Unsecured Creditors may occur depending on the outcome of the Potential Tax Claims.

 

Status Updates

 

            The Trustee will not issue further Status Updates until the Potential Tax Claims is resolved.