Section 1123(b) (3) of the Bankruptcy Code facilitates the use of a liquidating trust for prompt administration of the estate by providing post-confirmation standing to an appointed representative of the estate to enforce claims and interests.By establishing a liquidating trust pursuant to section 1123(b)(3) in a confirmed plan of reorganization or liquidation, a debtor can transfer causes of action and other assets to a trust, for future liquidation and distribution to the debtor’s creditors, and avoid delaying plan confirmation.
Liquidating trusts can be effective tools to wind down any business enterprise, including debtors in Chapter 11 bankruptcy cases and entities that dissolve outside of bankruptcy. To that end, in a Chapter 11 case, a debtor’s exclusive right to file a plan is limited to 120 days (subject to extensions for cause), but once a plan is confirmed, the bankruptcy estate ceases to exist and the debtor loses its status as debtor in possession, including its authority to act as a bankruptcy trustee and pursue estate claims.
The Chrysler Liquidating Trust partnership grew out of discussions between Secretary Mc Donald and Bob Manzo, Trustee for the Trust on the importance of forging strategic partnerships and the ongoing work to end Veteran homelessness.
“It gives me great pleasure to announce another VA partnership,” said VA Secretary Robert A. “VA’s new strategic partnership with the Chrysler Liquidating Trust is a great example of ways VA is opening its doors to new kinds of partners to better serve Veterans.
Caring for Veterans is a shared responsibility and opportunity.” “After speaking with Secretary Bob and hearing about VA’s newly invigorated effort to work with external partners, I wanted to find a way to use these funds to support Veterans,” said Trusts’ Manzo.
WASHINGTON – The Department of Veterans Affairs (VA) is partnering with Chrysler Liquidating Trust to provide funds to support VA efforts to end Veteran homelessness.