Litigation Trust Clause Samples

A Litigation Trust clause establishes a legal entity, known as a litigation trust, to pursue and manage certain legal claims or causes of action on behalf of designated beneficiaries, often in the context of bankruptcy or corporate restructuring. This clause typically outlines the trust's powers, the appointment of a trustee, and the process for distributing any recoveries to creditors or stakeholders. By centralizing the management of litigation assets, the clause ensures efficient prosecution of claims and equitable distribution of proceeds, thereby maximizing recoveries and resolving disputes in an organized manner.
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Litigation Trust. The Global Plan will establish a litigation trust (the "Litigation Trust") for pursuit of all of the Debtors' causes of action, including, without limitation, avoidance causes of action, against third parties (not otherwise released pursuant to the Global Plan), all of which shall be contributed to the Litigation Trust, except for preference claims against holders of RCM Securities Customer Claims and RCM FX/Unsecured Claims, which are to be pursued, funded and governed in accordance with the RCM Settlement Agreements. To the extent that any recovery of the Litigation Trust results in a claim under section 502(h) of the Bankruptcy Code, the Litigation Trust shall be responsible for satisfying (out of the recoveries otherwise collected from the holder of the 502(h) claim), the distribution that would have been made on such 502(h) claim if it had been allowed against a Debtor, without dilution for such claim. Mechanics in respect of the payment of such 502(h) claims shall be determined in final Global Plan and Litigation Trust documents. The Litigation Trust shall be structured in a manner that provides for a senior Tranche A and a junior Tranche B (which, itself, shall be composed of preferred and common interests). No payments will be made in respect of either class of Tranche B interests until Tranche A has been fully and indefeasibly paid. On the Plan Effective Date (and as adjusted from time to time to reflect claims allowance processes), Tranche A shall have a balance equal to the aggregate amount of allowed and unpaid RGL Unsecured Claims, FXA Unsecured Claims, RCM Implied Deficiency Claims and RCM FX/Unsecured Claims (all such claims to include post-petition interest through the Plan Effective Date and to be adjusted appropriately to reflect no greater than a 100% recovery per asserting party) plus any amount incurred in respect of funding the Litigation Trust pursuant to sub-section vi below. Tranche A shall earn interest from the Plan Effective Date at the rate of 10% per annum, compounding quarterly, until paid in full. i. Tranche A. Beneficiaries of Tranche A will be RCM (for distribution in accordance with the RCM Settlement Agreements), holders of FXA Unsecured Claims, and holders of RGL Unsecured Claims (which, for the sake of clarity, shall not include the Lender Group, the Bondholders or the Indenture Trustee), in each case, pro rata based on the amount of (a) in the case of RCM, the aggregate amount of the allowed RCM Implied Deficiency Cla...
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Litigation Trust. Except as otherwise provided for in the Plan, all claims, rights and causes of action of the Company that could have been brought or raised by or on behalf of TOUSA or any of its affiliates against any third party based on events that occurred prior to the Petition Date, except such claims, rights or causes of action otherwise designated (any such designated claims to be acceptable to the Debtors and the Senior Noteholders) as excluded claims and preserved by the Plan (or Plan supplement), will be assigned and transferred to a litigation trust and will be pursued for the benefit of Unsecured Creditors in accordance with the terms of the litigation trust agreement. The allocation of litigation trust proceeds necessary to determine the share of litigation trust proceeds allocable to the holders of Senior Notes (the “Senior Notes Litigation Share”), Subordinated Notes (the “Subordinated Notes Litigation Share”) and General Unsecured Claims (the “General Unsecured Litigation Share”), form of litigation trust agreement and governance of litigation trust (appointment of trustee and litigation trust committee) shall be acceptable to the Company and the Senior Noteholders. No distribution of the Subordinated Notes Litigation Share shall be made until such time as the Senior Notes have been paid in full. Based upon considerations of applicable law (including tax and securities law), the Company and the Senior Noteholders shall agree upon whether beneficial interests in the litigation trust will be transferable. Employment Agreements: To be determined.
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Litigation Trust. In consideration of the transfer of the ESI Causes of Action to the Litigation Trust, ESI shall be a Litigation Trust Beneficiary, to the extent determined by the Bankruptcy Court, after consideration of all relevant factors. Any recoveries received from the Litigation Trust shall be available for distribution to ESI’s creditors based upon a plan of reorganization or liquidation to be filed for ESI or in connection with its liquidation and dissolution under state law, as applicable.
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Litigation Trust. This Litigation Trust Agreement, effective as of December 31, 2009 (as from time and time amended, supplemented, or otherwise modified in accordance with the terms hereof, this “Litigation Trust Agreement”), by Idearc Inc. (“Idearc”) and its affiliated debtors and debtors-in-possession (together with Idearc, the “Debtors”)(1) for the benefit of the Beneficiaries (as defined herein) entitled to the Trust Assets (as defined herein), and U.S. Bank National Association, as the initial litigation trustee (the “Litigation Trustee”).
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Related to Litigation Trust

  • Liquidating Trustee Upon dissolution of the Partnership, unless the business of the Partnership is continued pursuant to Section 12.2, the Board of Directors shall select one or more Persons to act as Liquidating Trustee. The Liquidating Trustee (if other than the General Partner) shall be entitled to receive such compensation for its services as may be approved by holders of at least a majority of the Outstanding Common Units. The Liquidating Trustee (if other than the General Partner) shall agree not to resign at any time without 15 days’ prior notice and may be removed at any time, with or without cause, by notice of removal approved by holders of at least a majority of the Outstanding Common Units. Upon dissolution, removal or resignation of the Liquidating Trustee, a successor and substitute Liquidating Trustee (who shall have and succeed to all rights, powers and duties of the original Liquidating Trustee) shall within 30 days thereafter be approved by the holders of at least a majority of the Outstanding Common Units. The right to approve a successor or substitute Liquidating Trustee in the manner provided herein shall be deemed to refer also to any such successor or substitute Liquidating Trustee approved in the manner herein provided. Except as expressly provided in this Article XII, the Liquidating Trustee approved in the manner provided herein shall have and may exercise, without further authorization or consent of any of the parties hereto, all of the powers conferred upon the Board of Directors and the General Partner under the terms of this Agreement (but subject to all of the applicable limitations, contractual and otherwise, upon the exercise of such powers, other than the limitation on sale set forth in Section 7.11(b)) necessary or appropriate to carry out the duties and functions of the Liquidating Trustee hereunder for and during the period of time required to complete the winding up and liquidation of the Partnership as provided for herein.

  • Litigation, etc The Fund shall give prompt notice in writing to the Purchaser of any litigation, administrative proceeding or business development which is reasonably expected to materially adversely affect its business, properties or affairs or to impair the ability of the Fund to perform its obligations as set forth hereunder or under any of the other Related Documents. All information, reports and other papers, documentation and data with respect to the Fund furnished to the Purchaser pursuant to this Section 6.9 shall be, at the time the same are so furnished, complete and correct in all material respects and, when considered with all other material delivered to the Purchaser under this Agreement or made available pursuant to the Due Diligence Request, will not contain untrue statements of material facts or omit to state material facts necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.

  • Litigation; Claims Any rights (including indemnification) and claims and recoveries under litigation of Seller against third parties attributable to the period on or prior to the Closing except to the extent relating to the Assumed Liabilities;

  • Directors, Trustees and Shareholders and Massachusetts Business Trust It is understood and is expressly stipulated that neither the holders of shares in the Fund nor any Directors or Trustees of the Fund shall be personally liable hereunder. With respect to any Fund which is a party to this Agreement and which is organized as a Massachusetts business trust (“Trust”), the term “Fund” means and refers to the trust established by its applicable trust agreement (Declaration of Trust) as the same may be amended from time to time. It is expressly agreed that the obligations of any such Trust hereunder shall not be binding upon any of the trustees, shareholders, nominees, officers, agents or employees of the Trust, personally, but bind only the trust property of the Trust, as provided in the Declaration of Trust of the Trust. The execution and delivery of this Agreement has been authorized by the trustees and signed by an authorized officer of the Trust, acting as such, and neither such authorization by such Trustees nor such execution and delivery by such officer shall be deemed to have been made by any of them, but shall bind only the trust property of the Trust as provided in its Declaration of Trust.

  • Litigation and Claims No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Borrower is pending or threatened, and no other event has occurred which may materially adversely affect Borrower’s financial condition or properties, other than litigation, claims, or other events, if any, that have been disclosed to and acknowledged by Lender in writing.