Liquidating a trustee company
Effective December 31, 2008, Cap Re ceased reinsuring new risk, placing the existing reinsurance agreements into run-off in accordance with their terms.As of December 17, 2013, the Effective Date of the Plan, the Liquidating Trust beneficially owned approximately 80 properties located in 34 states. In addition, any real property acquired subsequent to that date in connection with foreclosure proceedings has been and will be conveyed directly to Res Cap Securities Holdings Co., rather than to the Liquidating Trust. Between December 17, 2013 and January 15, 2014, the Trust sold four properties, on which no gain or loss was recognized for income tax purposes.
In limited circumstances, the creditors involved in a bankruptcy case can elect a trustee.to liquidate and distribute assets of the debtors in the Res Cap bankruptcy case. After his time at Price Waterhouse, he served as a Senior Managing Director at FTI Consulting. Weber has served on the Contra Costa Civil Grand Jury, performed occasional independent consulting projects and assumed board/trustee positions. Weber currently serves on Board of Directors of winery Truett Hurst, Inc., and chairs the audit committee.The Liquidating Trust, through its agents, shall wind down the affairs of and dissolve the Debtors and their subsidiaries including the Non-Debtor subsidiaries. The Res Cap Liquidating Trust was established in December 2013 under the Second Amended Joint Chapter 11 Plan of Residential Capital, LLC, et al.Section 2.5(b) of the Liquidating Trust Agreement provides that if assets cannot be transferred to the Liquidating Trust by a Debtor entity, or it is impracticable or inadvisable to do so, the Debtor entity will continue to retain those assets until it is notified that the Liquidating Trust may receive the assets.Assets that are held by the Debtor entities under these circumstances are referred to as assets held in bailment. The assets held in bailment are consolidated into the Liquidating Trust Financial Statements and are included in the appropriate line items on the Consolidated Statement of Net Assets in Liquidation, as follows: Res Cap Liquidating Trust 2014 Quarterly Summary Report – UNAUDITED Statement of Net Assets in Liquidation (Liquidation Basis) (in 000’s) The reduction in the assets held in bailment between December 17, 2013 and September 30, 2014 is primarily attributable to the initial distribution and the bank accounts of the Debtors being novated to the Liquidating Trust following the plan effective date.As stated in A.9 above, the Liquidating Trust does not believe that any such proceeds would constitute trade or business income.
However, any such income may be treated as United States source income that is subject to withholding for non-U. Unitholders at a 30% rate (or lower applicable treaty rate).
The Bankruptcy Trustee will act on behalf of the debtor to guarantee that both the creditors’ and the debtor’s interests are maintained in accordance with the bankruptcy laws, and will often be required to act as a negotiator between the two parties.
Since the 1990s, duties similar to those of a trustee are sometimes performed by an individual called a Chief restructuring officer (CRO), generally prior to, or subsequent to, a bankruptcy proceeding (generally, a Chapter 11 proceeding).
used or disposed of in furtherance of any trade or business.” Consistent with these provisions, and in light of the nature of the Liquidating Trust’s assets, the Liquidating Trust does not believe that to date it has recognized any income that would constitute trade or business income (or unrelated business taxable income or income that is effectively connected to the conduct of a trade or business in the United States, though such characterizations may depend in part on each Unitholder’s unique tax position) , and it does not anticipate that it will do so in the future.
However, there can be no assurance that this will be the case.
The trustee may also assist individual in preparing and submitting a consumer proposal to creditors.