Aerospace Creditors Liquidating Trust Sells Obligations Due From AM General.NEW YORK--(BUSINESS WIRE)--April 28, 1995--The Trustees of the Aerospace Creditors Liquidating Trust (PSE PSE 1. pale soft exudative pork. 2. portosystemic encephalopathy. :ARO.TT) announced today that it has sold to AM General Corp. ("AMG AMG All Music Guide (music website) AMG All Media Guide (group of media websites) AMG All Movie Guide (Movie website) AMG Arzneimittelgesetz (German Law) ") all of AMG's obligations to the Trust, including a $15.2 million note and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. thereon, all rights to earn-out and non-competition payments arising from a 1992 sale of certain businesses to AMG, and 100 shares of AMG common stock (together, the "AMG Obligations") in a sale that resulted in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Trust of $46,546,000 on April 27, 1995. The Trust was formed in 1993 when certain assets, including the AMG Obligations, were transferred to the Trust pursuant to the LTV LTV See: Loan-to-value ratio Second Modified Joint Plan of Reorganization (the "Joint Plan"). Certificates of beneficial interest ("CBIs") in the Trust were issued to the unsecured creditors of LTV Aerospace and Defense Co. ("Aerospace") to evidence their interests in the Trust. The LTV Corp. and 66 affiliates, including Aerospace, had filed for Chapter 11 protection in July of 1986 and the Joint Plan was confirmed by the bankruptcy court in May 1993. The Trustees expect to distribute the bulk of the proceeds from the sale of the AMG Obligations to CBI CBI abbr. cumulative book index CBI Confederation of British Industry CBI n abbr (= Confederation of British Industry) → C.E.O.E. holders after estimating the additional cash reserves the Trust will need to retain for remaining liquidation costs of the Trust. After that distribution to CBI holders, the remaining assets of the Trust will consist of (i) the cash reserves the Trustees determine to retain, (ii) the right to the first $10 million in proceeds from a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. matter between Aerospace and Thomson-CSF S.A. (with the difference between $10 million and the proceeds actually received by the Trust, if less than $10 million, guaranteed by The LTV Corp.), and (iii) the rights to any proceeds from a litigation matter between Aerospace and McDonnell Douglas Corp., in connection with which the Trust bears the burden of the legal fees and expenses. CONTACT: Aerospace Creditors Liquidating Trust Linda Hitchings, 212/808-0539 |
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