Liquidating trust

The Trust was represented in the Director and Officer action by Whiteford, Taylor & Preston L. P., led by Kevin Hroblak and William Ryan, and Mc Kool Smith, P. Munson to voluntarily dismiss the Virginia lawsuit they filed in November because it……

C., led by Robert Manley and Lewis Le Clair, and Christopher Nolland, who served as Special Settlement Counsel to the Trust. Read Full Article A Virginia judge said the court-appointed official in charge of winding down Bearing Point Inc.’s business can move forward with a lawsuit against the consulting firm’s officers and directors, including former Chief Executive F. Read Full Article Dallas, Business Wire (May 30, 2012, PM EST) – John De Groote Services, LLC, as Liquidating Trustee to the Bearing Point, Inc.

“At this point the primary assets of the Trust have been liquidated, and our remaining focus is to extinguish the final obligations of the Trust,” De Groote said.

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The Complaint further alleges that the failures of the directors were avoidable, and directly resulted in the decline of the Company’s value and inability to obtain the best price available for its assets, which the directors could have achieved by either selling the Company as a whole for a price in the approximate range of $1 billion to $1.4 billion or by selling the Company’s businesses for an aggregate price of $1.56 to $2.3 billion. The hearing before the United States Bankruptcy Court for the Southern District of New York on the Motion for an Order (A) Enforcing Confirmation Order, (B) Holding F. On February 7, 2013, the Court entered an Order finding that: 1. The Court further ordered that: A) The Former Directors are enjoined from prosecuting or continuing the claims brought in the New Virginia Lawsuit in any forum other than that of the Honorable Robert E.

The Complaint further alleges that, instead, the directors’ failures led to Bearing Point’s bankruptcy and liquidation of its business units and other assets, yielding net proceeds of approximately $400 million and resulting in losses of $627 million to $1.88 billion. The Confirmation Order is binding on the Former Directors; and 2. Gerber of the United States Bankruptcy Court for the Southern District of New York; B) The Former Directors shall, within 10 business days of the date of the Order, voluntarily dismiss the New Virginia Lawsuit without prejudice or move to transfer it to the Court of the Honorable Robert E.

A chapter 11 orderly liquidation is often the result of a failed reorganization attempt.

In fact, debtors often file chapter 11 petitions intending to file and confirm a liquidating plan. Therefore, "[a]s the assignee of 'all' or 'substantially all' of the property of the corporate debtors, the trustee must file the returns that the corporate debtors would have filed had the plan not assigned their property to the trustee." Id.

As chapter 11 filings increase, so will the number of chapter 11 liquidations. §1146(c) provides that "The issuance, transfer or exchange of a security, or the making or delivery of an instrument of transfer under a plan confirmed under §1129 of this title, may not be taxed under any law imposing a stamp tax or similar tax," failing to pay other taxes could create personal liability for the liquidation trustee if the liquidation trust's assets are depleted. The court held the trustee personally liable under 26 U. Although the trustee in Hemmen was not held personally liable for taxes, it is an example of the caution a liquidation trustee must exercise in administering the liquidation trust.

Indeed, filing chapter 11 does not equate to reorganization. Additional liability may result from the requirement to pay quarterly fees to the U. Trustee "until the case is converted or dismissed." 28 U. This site was created by John De Groote Services, LLC to provide information on the Complaint and resulting litigation against Bearing Point, Inc.'s former Chief Executive Officer and certain members of its Board of Directors. Munson in Contempt, and (C) Imposing Sanctions for Willful Violation of Confirmation Injunction that remain pending in that same Court. Three former directors of Bearing Point have agreed to dismiss a lawsuit they recently filed in Virginia against John De Groote, and De Groote has agreed to dismiss his request to the New York Bankruptcy Court to hold the three former directors in contempt and impose sanctions for violating a court order by filing the lawsuit against him in Virginia.The case has been settled, has been funded, and has been formally dismissed by the Circuit Court for the County of Fairfax, Virginia. was one of the largest professional and IT consulting firms in the world, with an aggregate value of as much as .3 billion. Mc Geary, and Edward Munson to dismiss the Adversary Proceeding against John De Groote in the United States Bankruptcy Court for the Southern District of New York, while John De Groote similarly filed a Notice withdrawing those portions of his Motion for an Order (A) Enforcing Confirmation Order, (B) Holding F. Order to Approve Settlement Entered Today the United States Bankruptcy Court for the Southern District of New York granted the Motion for Entry of an Order Approving Settlement, filed on March 21, 2013, entering an Order approving the proposed settlement. On February 8, 2013, the Defendants filed a Motion for Summary Judgment along with Briefs in Support of the Motion.“If all goes as planned we’ll be in a position to distribute the proceeds from this settlement, net of litigation expenses and other costs, by midsummer.” Three former directors of Bearing Point have agreed to dismiss a lawsuit they recently filed in Virginia against De Groote.De Groote has agreed to dismiss his request to the New York Bankruptcy Court to hold the three former directors in contempt and impose sanctions for violating a court order by filing the lawsuit against him in Virginia.With this distribution, the Trust has returned over 6 million to Bearing Point’s creditors, including payment in full to secured lenders, full satisfaction of Bearing Point, Inc.’s Paid Time Off obligations to former employees, payment of over million to additional administrative and priority creditors, and million to unsecured creditors.

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