Bgi creditors liquidating trust
NOT FOR PUBLICATION MEMORANDUM OPINION AND ORDER DENYING MOTION OF GIFT-CARD CLAIMANTS FOR A STAY OF INTERIM DISTRIBUTIONS PENDING APPEAL OF DENIAL OF LEAVE TO FILE LATE CLAIMS MARTIN GLENN, Bankruptcy Judge. 2012); Memorandum Opinion Denying Gift-Card Claimants’ Motion to File Late Claims and Class Certification (the “Gift-Card Opinion”) (ECF Doc. On August 28, 2012, the Gift-Card Claimants filed notices of appeal from this decision. For the reasons explained below, the Court denies the motion of the Gift-Card Claimants for a stay of the interim distributions. BACKGROUND On August 14, 2012, the Court in a reported decision denied the motions of certain holders of the Borders’ consumer gift-cards to (1) file untimely proofs of claim based on the amounts remaining on their gift-cards and (2) enter an order certifying a class of all holders of Borders’ gift-cards. On February 16, 2011 (the “Petition Date”), the Debtors filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code.
A liquidating trust is a tax-efficient vehicle to liquidate assets because income of a qualifying liquidating trust is only taxed as income at the beneficiary level.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.As a result, while virtually all agreements governing such liquidating trusts contain indemnification and protecting the trustee except in the case of fraud or gross negligence, the trust may ultimately lack the financial wherewithal to support such provisions.Kurtzman Carson Consultants LLC ("KCC") does not guarantee or warrant that the data provided herein is accurate, complete, or current and shall not be liable to you for any loss or injury arising out of or caused in whole or in part by the acts, errors or omissions of KCC, whether negligent or otherwise, in procuring, compiling, gathering, formatting, interpreting, reporting, communicating or delivering the information contained in this website.KCC does not undertake any obligation to update, modify, revise or reorganize the information provided herein, or to notify you or any third party should the information be updated, modified, revised or reorganized.