Cfn liquidating trust fdating commyphotos
As a refresher, here are the pertinent facts of the case: Three entities – Alameda Investments, Inc., Phoenix, LLC, and AKT Investments, Inc.
recently affirmed the bankruptcy court’s order in In re Alameda Investments, LLC, which held that transfer restrictions in an operating agreement to which the debtor was a party do not prohibit the transfer of the debtor’s membership interest in a joint venture to the liquidating trust established pursuant to the debtor’s chapter 11 plan.
Alameda and Phoenix each owned a 50 percent membership interest in West Lakeside, LLC, and AKT served as the managing member.
The operating agreement prohibited transfers of a member’s interest (membership, economic, and otherwise) without prior written approval of a majority of the other members.
Ambridge also offers a unique tax coverage enhancement to its Liquidating Trustees Liability Insurance policy.
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.
The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.The debtors’ joint chapter 11 plan established a liquidating trust for the primary purpose of liquidating and distributing Alameda’s assets.The plan provided that, with certain exceptions not relevant here, all of Alameda’s rights, title and interest in and to Alameda’s assets were “irrevocably transferred, absolutely assigned, conveyed, set over and delivered to the Alameda Liquidating Trust” for the benefit of the trust beneficiaries.Section 17301 (a) of the California Corporations Code also prohibited the transfer of membership interests without the consent of a majority of the non-transferring members.On January 9, 2009, Alameda and certain of its affiliates filed for chapter 11 protection in the United States Bankruptcy Court for the Central District of California.