Augustus is in post-confirmation wind-down: the Augustus Litigation Trust reports that the plan was confirmed on July 26, 2022, became effective July 31, 2022, and the case remains open with a final-decree application expected by September 30, 2026, according to the latest Post-Confirmation ReportDkt. 322.
The debtor entered chapter 11 on April 24, 2021 as a Subchapter V small business case, with Brian Ryniker serving as chief restructuring officer, after an AI software business with limited hard assets and operating liquidity pressure sought court protection to preserve going-concern value and stabilize operations. The petition and initial declaration identified a prepetition PPP loan payable of about $653,000, while the early case papers framed the business as dependent on continued payroll, vendors, intercompany transactions, and access to new money to maintain operations during the restructuring process through the Voluntary PetitionDkt. 1 and Initial Ryniker DeclarationDkt. 3.
The first-day path was operational preservation rather than an immediate sale: Augustus sought authority to continue cash management, pay limited wages and critical vendors, reject burdensome contracts, and obtain up to $2.0 million of DIP financing, including an initial $400,000 interim commitment, to fund payroll, contractors, vendors, and working capital while it pursued restructuring alternatives through the Supplemental First Day DeclarationDkt. 17. By June 2022, that path had shifted into a liquidation framework, with the debtor filing a five-class Revised First Amended Plan of Liquidation through the .
The current posture is therefore not an operating reorganization but plan administration. For the quarter ended March 31, 2026, the litigation trust reported $14,481 of current-quarter cash disbursements, $921,057 of cumulative disbursements since the effective date, no current professional-fee payments, and no distributions yet to holders of claims or interests under the confirmed plan; the near-term milestone is the anticipated final-decree application by September 30, 2026, in the Post-Confirmation ReportDkt. 322.
