Without the benefit of insurance, a challenge to a trust’s status could lead to the diminution in value of the trust assets, or worse, if the challenge is made after funds have been distributed, there may not be sufficient trust assets to defend such challenge, or pay any tax, interest or penalties, and the practical recovery of funds from beneficiaries may be difficult.
Ambridge’s Tax Qualification Insurance extension can protect trusts (and indirectly their beneficiaries) from the financial exposures resulting from a disqualification as a liquidating trust.
While no-action relief granted by the Staff to other parties and with respect to certain facts and circumstances form all or part of a persuasive argument for like treatment in similar fact situations, the grant of no-action relief by the Staff does not represent an official action by or on behalf of the SEC Commissioners.
to liquidate and distribute assets of the debtors in the Res Cap bankruptcy case.
The Liquidating Trust, through its agents, shall wind down the affairs of and dissolve the Debtors and their subsidiaries including the Non-Debtor subsidiaries.
Law360, New York (September 4, 2014, AM EDT) -- In the case of United States of America v.
and its related subsidiaries (the "debtors") pending...
A company considering a liquidating trust needs to determine whether it will be required to comply with the registration and reporting requirements under the Securities Exchange Act of 1934.
Under Section 12(g)(1) of the Exchange Act, a company with more than million in assets must register each class of security that is held of record by 500 or more persons and comply with the reporting requirements under Sections 13 and 15(d) of the Exchange Act.
: In bankruptcy proceedings, there are still securities laws considerations.
The structure of liquidating trusts is just one example.
Because liquidating trusts are formed to maximize value and distribute to creditors some or all of the proceeds of divested assets of a formerly distressed and now liquidated entity, trusts and trustees are subject to scrutiny of already disgruntled beneficiaries or other third parties who may disagree with the manner in which the trustee is attempting to liquidate otherwise illiquid assets.
Adding to the concern of trustees is the fact that, by its nature, the trust is designed to liquidate and distribute all of its assets.
kill, murder, remove, destroy, do in (slang), silence, eliminate, take out (slang), get rid of, wipe out (informal), dispatch, finish off, do away with, blow away (slang, chiefly U.