HOT ISSUES
Question #3: 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.