Richmond, Virginia. Currently, LandAmerica 1031 Exchange Services, Inc. Liquidating Trust (the “Trust”) is exploring the best ways to maximize the recovery of the exchange customers hurt in the LandAmerica bankruptcy. The Trust began its work in mid-December and is currently concerned with two major assets: first, the causes of action against the issuers and sellers of the auction rate securities (“ARS”); and second, the $181.7 million in face value ARS held by LandAmerica.
With regards to the ARS litigation, the law firm of Jenner & Block is working towards filing suits against the issuers and sellers of the ARS. As you may recall, Jenner & Block was approved by the bankruptcy court last summer to conduct the ARS litigation. Jenner & Block is currently reviewing documents and examining witnesses in preparation for filing suit against the issuers and sellers of the ARS. This process has been hampered as Citigroup Global Markets, Inc. has objected to a number of the Trust’s discovery requests. The hearing related to this issue has been continued until September 16, 2010.
With regards to the sale of the ARS, the Trust continues to meet with representatives of SecondMarket to monitor the value of the ARS. As you may recall, SecondMarket was approved by the bankruptcy court to sell and market the ARS. While no additional recoveries have been made yet, the Trust is working to bring in more funds to enable further distributions. Ronald Page, PLC represents creditors in complex Chapter 11 bankrutpcy cases.