Equity committee plan channels recoveries through liquidation trust
After filing an August 2010 liquidation plan, the Joint Equity Committee filed a December 27, 2010 plan and disclosure statement built around substantive consolidation, investor distributions, and prosecution of retained claims source filing source filing. The disclosure statement describes Real Estate Partners and seven related funds as having sold $10,000 investment units from January 2003 through August 2006, raising about $55 million from roughly 1,600 investors for real-estate acquisitions; it also says the offerings were not registered with the SEC and that proceeds were commingled, misappropriated, and cycled through at least 20 properties source filing.
The plan treated investor proofs of claim as recharacterized interests but used the SEC Allowed Claim as the distribution vehicle for the 1,600-plus investors. It estimated administrative claims below $50,000, priority claims at $35,304.46, secured claims at zero, trade unsecured claims at $64,094.83, and the SEC Allowed Claim at $53,014,865.12 source filing.
