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]

 

 

December 21, 2015

 

STATUS UPDATE # 38

 

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

 

           

Bankruptcy Court Action

 

            The Bankruptcy Court has approved the settlement between the Trustee and Greenwich Capital Financial Products, Inc.  There are no other significant litigation matters outstanding or contemplated at this time.

 

Potential Tax Claim

 

            The Trustee has amended numerous income tax returns for the potential impact for REMIC taxes.  While the matter is not resolved at this time, the Trustee has determined that the Trustee can reserve sufficient funds to pay the possible tax obligations.

 

Interim Distribution

 

            On December 16, 2015, the Trustee filed the Motion of Chapter 7 Trustee for Authority to Make Interim Distributions to Holders of Certain Chapter 11 Administrative Expense Claims, Priority Claims and General Unsecured Claims ("Motion").  A copy of the Motion and the Notice of the Motion is attached hereto.  The Trustee intends to pay an Interim Distribution for certain resolved claims as follows:

 

 

                                    Class of Creditor                                             Distribution %

 

                                    Chapter 11 Administrative Claims                  100%

                                    Priority Claims                                                100%

                                    Noteholder Claims                                          4%

                                    Other General Unsecured Claims                   4%

 

            The Motion seeks to pay the Interim Distribution shortly after the Bankruptcy Court approves the Motion.  The Trustee anticipates that checks will be mailed in February, 2016.

 

            All claimants will receive payment of their claim directly from the Debtor's estate maintained by the Trustee, except Noteholder Claims.

 

           All Noteholder Claims will be paid to the Indentured Trustee and the individual claim will be paid by the Indentured Trustees of the respective class of Noteholders.  The Indentured Trustees' of the Senior Collateralized Noteholders (the "Collateralized Noteholders") are: Law Debenture Trust Company of New York and Wells Fargo Bank.  The Indentured Trustee for all other Noteholders (the "Unsecured Noteholders") is U.S. Bank.

 

         The Collateralized Noteholders have employed EPIQ Systems to administer the previous distribution.  All questions by Collateralized Noteholders should be directed to the contact information previously provided.         DO NOT SEND QUESTIONS OR CHANGE OF ADDRESS INFORMATION TO THE CHAPTER 7 TRUSTEE.

 

         A call-in phone number has been established by U.S. Bank which is available for a recorded informational message.  DO NOT SEND QUESTIONS OR CHANGE OF ADDRESS INFORMATION TO THE CHAPTER 7 TRUSTEE.  If an Unsecured Noteholder believes it is imperative to notify U.S. Bank of its change of address before U.S. Bank establishes a procedure to update U.S. Bank's records, I suggest you send the address change to: 

 

Clark T. Whitmore, Esquire

Maslon Edelman Borman & Brand, LLP

3300 Wells Fargo Center

90 South Seventh Street

Minneapolis, MN 55402

 

and request he forward the address change to U.S. Bank.

 

            To emphasize: THE CHAPTER 7 TRUSTEE WILL PAY NOTEHOLDER CLAIMS TO THE APPROPRIATE INDENTURED TRUSTEE.  THE CHAPTER 7 TRSUTEE WILL NOT MAIL ANY PAYMENTS TO NOTEHOLDERS.  PLEASE CONTACT THE APPROPRIATE INDENTURED TRUSTEE.

 

                       

Future Reports

 

            This Status Update will be the last update on this website.  Future updates will be located at http://www.mctllp.com/trustee.html.