Chapter 11 liquidating trust

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The appointment is generally done in the plan, confirmation order and trust agreement. 94-45, the plan and disclosure statement must explain how the bankruptcy estate will treat the transfer of its assets to the trust for federal income tax purposes.

The creditors become the trust beneficiaries and their claims are paid from trust assets by a waterfall established pursuant to the plan.If the plan fails to sufficiently preserve the claim, the claim may be subject to an attack on the basis of subject matter jurisdiction.The degree of specificity required in identifying preserved claims varies from jurisdiction to jurisdiction.The dissolution procedures for a business organization vary, depending on the type of entity and the jurisdiction in which it is formed.For example, as shown on the below chart, a Delaware corporation continues to exist for a period of three years following the filing of a certificate of dissolution, but a Delaware partnership or limited liability company’s legal existence continues indefinitely following an event of dissolution, until a certificate of cancellation is filed.

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