Case timeline

1. Jun 232026
   Status: GUC Trust dismisses $1.85 million LSC avoidance action

   The Soft Surroundings GUC Trust and LSC Communications US, LLC resolved Adversary Proceeding No. 25-03721, with the court signing a joint stipulation dismissing the action with prejudice and directing each side to bear its own fees and costs; pending motions in the adversary are denied as moot under the Joint Stipulation of Adversary Dismissal. The dismissal does not dismiss the main Chapter 11 case.

   The resolved complaint was one of the Trust’s post-confirmation avoidance actions: the Trust sued LSC on September 9, 2025 to recover at least $1,853,592.32 in alleged preferential or fraudulent transfers made during the June 12, 2023 to September 10, 2023 preference period, and sought claim disallowance under section 502(d) until repayment. For professionals tracking recoveries and GUC Trust monetization, the key update is that this potential recovery channel has been closed with prejudice rather than left as pending litigation.

   Sources and provenanceJune 23, 2026