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Agway Liquidating Trust
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Total Distribution To Date 71%

No Date Has Been Established For The Next Distribution
 

Agway Liquidating Trust Status
November 2010

 

When the Agway Plan of Liquidation was confirmed in the Spring of 2004, it was estimated that a total distribution of 54-66% would be made to unsecured creditors and provisions were made to permit the Liquidating Trust to make those distributions over a period of up to eight years (longer if necessary and approved by the Internal Revenue Service). In under five years, the Trust has distributed 71% per dollar of allowed claim.

The only significant remaining assets include cash or cash equivalents (the "Collateral") pledged to Agway's insurance companies to ensure payment of insured claims against Agway (such as former workers receiving permanent disability payments). Under the contracts with those insurance companies, the insurers may be entitled to retain all of the Collateral until every insured claim is fully resolved. The Liquidating Trustee believes that the insured claims will never exceed the total amount of collateral being held by the insurance companies, and is attempting to obtain a consensual return of the excess collateral. If those negotiations are successful, an additional distribution should take place within six months and the Trust would likely be closed in 2011. If those negotiations are unsuccessful, any further distributions would be dependent on successful litigation against the insurance companies and could take years and might never occur.

More details can be found in the Annual Report from the Liquidating Trustee.



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