Trustee’s Sixth Report
On May 4, 2023, the Trustee served materials in connection with its motion returnable June 1, 2023, which provides, among other things, a comprehensive update on developments in these proceedings since the Fifth Report and support of the Trustee’s request for the following orders that would, among other things:
approve the Sutton Settlement Agreement (“Sutton Settlement Approval Order”);
provided the Sutton Settlement Approval Order is granted, approve:
(i) the distribution of the Settlement Payment, to be received in respect of the Sutton Project, on a pari passu basis to the syndicated mortgage lenders who advanced funds pursuant to the Sutton 2012 Loan and the Sutton 2014 Loan; and
(ii) an amendment to paragraph 3 of the First Omnibus Order, as amended by the Third Omnibus Order, to replace all references to “65%” with “75%”, so that the Trustee shall be required to distribute 75% of any Realized Property pro rata to the Investors entitled to such funds following the receipt by the Trustee of a further $10 million of Realized Property (in addition to the Initial Payment received in respect of the Sutton Project), whether received before or after the date of the Fourth Omnibus Order; and
approve:
(i) the Sixth Report and activities of the Trustee described therein; and
(ii) the Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from March 1, 2022 to February 28, 2023.
Copies of the materials filed on May 4, 2023, including the Trustee’s Sixth Report, are available below.
