On November 11,2008, we notified creditors that Duplicate (2007) Inc. (Duplicate or the Company) executed a Trust Mortgage (the Trust) on October 28, 2008, which granted a security interest in all of the Company?s assets to our firm, McTevia & Associates, LLC, as Trustee for the benefit of creditors (the ?Trustee?). The Trust provides that a claims process be established so that all creditors are treated equally under the priorities established in liquidations under the United States Bankruptcy Code.
Our primary responsibility as Trustee was to take actions we deemed necessary to realize the highest possible dividends to creditors. Our first step after acceptance of the Trust was to notify creditors, institute a claims process, review the Company’s books and records, and conduct a liquidation analysis to determine the amount of funds that could be available to creditors.
We advised that the Trustee oversees or monitors the liquidation, administers a claims process for creditors and pays creditors in the priority established under the Code. The process is extremely time efficient and most estates we have administered over the years are closed within months, as opposed to years in the courts. The process is also extremely cost effective; creditor distributions are paid promptly after all claims have been reconciled and approved by the Trustee. Virtually all of the estates we have administered in this fashion have closed with far less costs than in a bankruptcy.
We also informed creditors that the Trustee was presently liquidating the Companys assets and that according to the books and records of Duplicate you appeared to be a creditor of the Company. Under the terms of the Trust, creditors who wish to share in the proceeds from a liquidation of the Duplicate assets must file a claim with the Trustee for the amount that they claim they are owed by Duplicate. A proof of claim form was provided with the November 11, 2008 notice.
The Trustees records reflect that you were among the 344 creditors who filed claims with the Trustee totaling $487,500.
The next step in this process is for the Trustee to compare your claim with the records of the Company. Those claims that are consistent with the Companys records will be accepted and claimants will be so notified. Claimants filing claims that are not consistent with the Company’s records will be contacted by the Trustee in an attempt to resolve the differences.
In the meantime, the Trustee is continuing with the assistance of the Companys principles in its efforts to sell the Companys assets, the proceeds from which will be used to pay creditor claims. At this time, there are not any funds available to pay creditors until the assets have been sold. The Trustee anticipates the claims resolution process will be completed within 60 days after which a report will be sent to claim holders which will include the results of a sale of the assets.