Richmond, Virginia. The Trustee for the LandAmerica 1031 Exchange Services, Inc. Trust (“LES Trust”) has been investigating litigation regarding the auction rate securities (“ARS”) held by LandAmerica and monetizing the remaining ARS in a way that achieves maximum recovery to the exchangers. The Trustee’s efforts have resulted in an agreement with Citigroup Global Markets (“CGMI”) for them to pay $95.5 million to the LES Trust. The ARS that are the subject of this settlement are the $120,300,000 in ARS that are currently held by the LES Trust and which were sold by CGMI to LandAmerica. The Trustee continues to evaluate monetizing the $50 million in principal amount of ARS underwritten by the Royal Bank ofCanada(“RBC”) and sold to LandAmerica by SunTrust and pursuing the related litigation claims with respect to those ARS.
This week the bankruptcy court approved the proposed $95.5 million settlement with CGMI. Payments equal to approximately 28% of the exchange funds you placed with LandAmerica 1023 Exchange Services, Inc. are to be made by the end of the year. Ronald Page, PLC represents creditors in complex Chapter 11 bankruptcy cases.