Liquidating trust and Adult chat and sharing
A chapter 11 orderly liquidation is often the result of a failed reorganization attempt. In fact, debtors often file chapter 11 petitions intending to file and confirm a liquidating plan. Therefore, "[a]s the assignee of 'all' or 'substantially all' of the property of the corporate debtors, the trustee must file the returns that the corporate debtors would have filed had the plan not assigned their property to the trustee." Id. Considering quarterly fees to be an "administrative expense for which the liquidation trust was responsible," the court found that "imposing post-confirmation quarterly fees upon the liquidation trust [was] neither an attempt to modify the plan nor a violation of separation of powers...." Id. Although liquidation trustees have not generally been held personally liable for environmental damage, the potential exists under federal and state law. Specifically, if a liquidation trustee engages in activities that could constitute managing or operating of trust property under 28 U.
For example, liquidation trustees not only have duties to the liquidation trust itself—and therefore its beneficiaries—they also have potential government liability, and potential liability for the expenses of administering the liquidation trust. The fiduciary duty standard of care, however, is not clear, and the case law is split over the applicable standard. W.2d at 579 (discussing both willful and negligent breaches); Compton v.
The liquidation trustee in essence has the duties and responsibilities of a state law trustee, including fiduciary duties to the liquidation trust. Liability for such errors and omissions is not necessarily limited to such insurance proceeds.
As such, candidates for liquidation trustee positions must consider the exposure potential to liabilities for acts and omissions occurring while administering the liquidation trust. Other penalties may be imposed, such as reducing the liquidation trustee's compensation or imposing a surcharge on the liquidation trustee.
In Hemmen, the Ninth Circuit held a chapter 7 trustee personally liable for failing to honor an IRS notice of levy against the allowed administrative expense claim of a corporate debtor's president.
Ohio 1998); see, also, In re Hudson Oil Co., 200 B.