Upon distribution, a letter with additional information concerning the distribution will be delivered to holders and will be made available in the "Important Documents Adelphia Recovery Trust" section of Adelphia's website at After the Dissolution Date, for purpose of liquidating and winding up the affairs of the Trust, the Trustees shall continue to act until the Trustees' duties under the Declaration and the Plan have been fully performed.All funds remaining after the Trust's obligations have been paid (and the winding up process completed) shall be distributed to the Trust Interest Holders.When one of the parties to a transaction files for bankruptcy, counterparties may find themselves as defendants in fraudulent transfer or other bankruptcy litigation seeking to "unwind" or "avoid" the transaction.In recent decisions by the Second and Third Circuits, defendants (represented by Wilmer Hale) successfully defended against such litigation on grounds that the debtor's creditors were not harmed by the challenged transactions and would not benefit if the transactions were unwound.About Adelphia Recovery Trust The Adelphia Recovery Trust is a Delaware Statutory Trust formed pursuant to the First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization of Adelphia Communications Corporation and Certain Affiliated Debtors, which became effective , 2007.The Trust holds certain litigation claims transferred pursuant to the Plan against various third parties and exists to prosecute the causes of action transferred to it for the benefit of holders of Trust interests.
Kasowitz understands that while litigation is always a risk, it can also be an opportunity.
The Trust will be terminated upon completion of the winding up activities.
Interest holder inquiries regarding Trust distributions under the Plan should be directed to [email protected]
This includes the power to "avoid" as a "fraudulent transfer," subject to certain defenses and limitations, a transfer of assets or an incurrence of obligations, where the transfer or incurrence was intended to defraud creditors by moving assets beyond their reach, or where the transfer was "constructively fraudulent" because it depleted an insolvent debtor's assets needed to repay its creditors.
The trustee may also avoid as a "preferential transfer" a payment or other transfer that gave a creditor more value than it would have received through a bankruptcy liquidation, again subject to certain defenses and limitations.