HOT ISSUES
Question #3: NEW - Why have I received distributions from both the Liquidating Trust and the Private Actions Trust?

Under the Joint Plan of Liquidation, four Trusts were formed. Background Each investor became a beneficiary of either the DBSI Liquidating Trust or the DBSI Real Estate Liquidating Trust depending on the type of investment.

In addition, investors also had the option to join the Private Actions Trust. Each investor received notice of the option to join the Private Actions Trust. See page 17 of TIC NBF. If you elected to join the Private Actions Trust, then you may be receiving distributions from the Private Actions Trust in addition to distributions from the Liquidating Trust. The distributions from the Private Actions Trust are funded by litigation recoveries from claims that the Private Actions Trust has asserted against certain defendants on behalf of investors. The distributions from the Liquidating Trust are funded by primarily non-litigation assets that were transferred from the DBSI bankruptcy estates to the Liquidating Trusts.

On September 18, 2017, the Bankruptcy Court entered an order terminating the Liquidating Trusts.  On November 14, 2017 the Bankruptcy Court entered an order terminating the Private Actions Trust.  No further distributions will be made from the Liquidating Trusts or the Private Actions Trust.

Pursuant to the Bankruptcy Court’s order terminating the Liquidating Trusts, the Liquidating Trustee has transferred the beneficial interests in the Estate Litigation Trust previously held by the Liquidating Trusts directly to the Liquidating Trust beneficiaries on a pro rata basis.  This means that any future funds available for distribution from the Estate Litigation Trust will be disbursed directly to the beneficiaries and schedule 12 Creditors of the Liquidating Trusts on a pro rata basis.  Currently, the Estate Litigation Trust has been extended, subject to further extensions, by order of the Bankruptcy Court through October 29, 2018.  Due to the uncertainties of litigation, it is not possible to predict the timing, amount or certainty of any distribution from the Estate Litigation Trust.