to holders of interests in the Trust pursuant to the First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization of Adelphia Communications Corporation and Certain Affiliated Debtors, dated as of .A chart summarizing the distribution of cash to be made to each series of interests in the Trust is available in the "Important Documents Adelphia Recovery Trust" section of Adelphia's website at Upon distribution, a letter with additional information concerning the distribution will be delivered to holders and will be made available in the "Important Documents Adelphia Recovery Trust" section of Adelphia's website at After the Dissolution Date, for purpose of liquidating and winding up the affairs of the Trust, the Trustees shall continue to act until the Trustees' duties under the Declaration and the Plan have been fully performed.All funds remaining after the Trust's obligations have been paid (and the winding up process completed) shall be distributed to the Trust Interest Holders.A victim of alleged fraud and plundering by its controlling shareholders, the Rigas family, Adelphia had been mired in Chapter 11 bankruptcy since June 2002.Even after seven months, an interim management team had failed to improve the company’s poor performance, and now a new CEO was assembling a new team.Kasowitz brings a comprehensive skill set to bear in its representation of corporations, financial firms and individuals in plaintiffs-side litigation.We consistently deliver winning results for our clients, whether by verdict or through settlement.
The Trust holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of Trust interests.
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.
Absent this provision, a debtor would be required to investigate and prosecute all avoidance and other causes of action prior to confirming a plan, which may take years.
Section 1123(b) (3) of the Bankruptcy Code facilitates the use of a liquidating trust for prompt administration of the estate by providing post-confirmation standing to an appointed representative of the estate to enforce claims and interests.