Corporation liquidating trust
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Such agreement provides for trustee duties, compensation of trustees, and governance as well as distributions and other administrative matters.
The liquidating trust normally has a lower cost structure than the existing fund and is managed on an "as needed" basis by the trustee as opposed to a full-time basis for the fund.
The remaining assets and liabilities are transferred into the newly formed trust and the former owners of the liquidating fund become unit holders or beneficiaries of the trust.
At the end of the fund's life cycle or term, the fund manager may have certain assets that are not easily liquidated and convertible into cash for distribution to the owners of the fund.The termination was concluded in connection with the sale by auction of the portfolio of real estate and promissory notes secured by residential mortgages owned by the Soundview Trust. Beck, the sale of the portfolio was a highly unique transaction, which CFN Trust was able to accomplish because of the outstanding performance of its advisors: "Michelle Slater of Miller Nash and Gene Wetzold of Boston Portfolio Advisors were able to discover the approach, skillfully design the structure within the operative documents, and successfully negotiate that legal structure with the counter-parties to the Soundview Trust, the Soundview bondholders and the auction purchaser," said Beck."I am grateful for the hard work and cooperation of all the parties involved in the success of this transaction." CFN Trust owned the residual interest in the Soundview Trust, which (together with related distributions held in reserve) was encumbered by claims of Greenwich Capital Markets, Inc., Greenwich Capital Financial Products, Inc., and MBIA Insurance Corporation.CFN Liquidating Trust, its asset manager, Boston Portfolio Advisors, Inc., and its business and tax counsel, Miller Nash LLP, handled this unique, complex transaction over a three-month period, closing the transaction on December 17, 2004.
The termination, completed more than a year prior to the anticipated early redemption date for the Soundview Trust asset-backed notes, was accomplished through the acquisition and tender of notes having an outstanding principal balance of approximately 9 million.
This reserve could be held in the trust for any contingent liabilities as they become due.