Updates

Update - 10/8/09

The Receiver has been proceeding consistent with the overall strategy outlined in our last update. He is continuing to pursue legal claims, complete the investor claims process, determine a final percentage to be paid to investors, and evaluate when best to make a distribution of funds to investors. Some more detail on each of these follows.

Legal Claims
The Receiver is continuing to pursue his claim against Mr. Erwin, the former Trustee of ABC. Mr. Erwin has filed Motions to Join Third Parties that have not been ruled on and which are delaying the ability to get a schedule for the case and a trial setting. The Receiver has asked the Court for a Scheduling Conference to assist in defining the remaining time to a resolution.

The Receiver continues to consider the estate's claims against Albatross and others related to the procuring of the Albatross bonds. He expects a decision in association with London counsel this month.

The Receiver has also initiated an action against Jason Sun. The Receiver is currently in communication with Mr. Sun, and the parties are discussing whether it will be possible to reach an agreed resolution of this claim.

Claims Process
At this point, there are 4,037 claims submitted by aggrieved parties. Of these claims, 3,755 have been reviewed and adjusted, and less than 282 now remain. The remaining claims have proved more difficult to resolve than the Receiver anticipated. These claims are largely held by persons in Taiwan, and so the communications necessary to resolve these claims is requiring more time. The Receiver is not certain as to how long it will take to resolve all of these claims, but is currently estimating another 60-90 days. We will provide a further update on this as that time approaches.

Interim Distribution of Money Held
It will be very expensive to process any distribution in this proceeding, including an estimated interim distribution. Thus, the Receiver would prefer to make only one distribution if it appears that the Legal Claims will be resolved within a reasonable time. If it appears that the litigation will be protracted, he will more seriously consider making an interim distribution in the first quarter of next year.