Datron inc liquidating trust
In conjunction with the other provisions of the Bankruptcy Code that require a disclosure statement and plan to provide “adequate information” for a claim or interest holder to make an informed judgment about the plan, Section 1123(b)(3) effectively provides notice to creditors of retention and prospective enforcement of claims that may enlarge the estate’s assets for distribution.A plan must expressly retain claims to preserve a liquidating trust’s standing to pursue them after plan confirmation.You further agree that by utilizing this site, your rights and obligations, as well as the rights and obligations of KCC, shall be governed, at KCC's sole discretion, by the laws of the State of California. Kacmarcik [email protected], Cifelli, Ellis & Nason, P. 1117 Perimeter Center West Suite W212 Atlanta, GA 30338 T: 404-262-7373 F: 404-262-9911 Co-Counsel to the CDC Liquidation Trust J. [email protected] Sanders LLP The Chrysler Building 405 Lexington Avenue New York, NY 10174-0700 T: 212-704-6000 F: 212-704-6288 Kurtzman Carson Consultants LLC ("KCC”) maintains this website at the direction of Lamberth, Cifelli, Ellis & Nason, P. KCC maintains this website for the public's convenience and, while KCC makes every attempt to ensure the accuracy of the information contained herein, this website is not the website of the United States Bankruptcy Court and does not contain the complete, official record of the Bankruptcy Court.Electronic mail or other communications through this website or otherwise to KCC or any party in connection with any matter will not be treated as privileged or confidential. All documents filed with the Court are available for inspection at the Clerk of the Bankruptcy Court, Northern District of Georgia.The appointment is generally done in the plan, confirmation order and trust agreement. 94-45, the plan and disclosure statement must explain how the bankruptcy estate will treat the transfer of its assets to the trust for federal income tax purposes.The liquidating trustee must also demonstrate that he or she qualifies as a representative of the estate. 94-45 notes that it does not define as a matter of law the circumstances under which an organization will be classified as a liquidating trust for income tax purposes, the conditions are commonly incorporated into plans and liquidating trust agreements whether or not an advance ruling is sought. A transfer to a liquidating trust for the benefit of creditors must be treated for all purposes of the Revenue Code as a transfer to creditors to the extent that the creditors are beneficiaries of the trust.Trustees may initiate these actions against parties with little to no connection to the United States raising unsettled questions over jurisdiction. Ascot (In re Waste2Energy Holdings, Inc.), Case No. It also represents parties in other insolvency proceedings, including receiverships, assignments for the benefit of creditors, dissolution proceedings under state law and rehabilitations and liquidations of insurance companies.The Bankruptcy Group works regularly with clients through all phases of the reorganization or liquidation of troubled businesses, including out-of-court workouts and distressed asset acquisitions.
If followed, these guidelines should ensure that the establishment of the trust will be treated as a transfer from the bankruptcy estate to the beneficiaries followed by a deemed transfer by the beneficiaries to the liquidating trust. Finally, a liquidating trust may lose its grantor trust status “if the liquidation is unreasonably prolonged or if the liquidation purpose becomes so obscured by business activities that the declared purpose of liquidation can be said to be lost or abandoned.” 26 CFR § 301.7701-4(d).
When drafting a plan and liquidating trust agreement, parties should ensure that the applicable jurisdictional prerequisites are met.
If a liquidating trustee’s standing to enforce estate claims, as an appointed representative under Section 1123(b)(3)(B), is challenged, the trustee must first demonstrate that he or she has been appointed to enforce the claim.
Additional considerations include retaining bankruptcy court jurisdiction in the plan and trust agreement so that a liquidating trustee can seek court approval of certain actions and decisions made on behalf of the trust.
An oversight committee is often utilized as well to oversee the liquidating trustee’s certain decisions and actions.