VMI LIQUIDATING TRUST
(updated December 2018)
The VMI Liquidating Trust (successor to Valley Mortgage) made an interim distribution to creditors and investors in September of 2013. This distribution was a small one, approximately $73,000 in total. A creditor with an approved claim of $25,000 received an interim distribution of approximately $100.
For the first interim distribution, the Trustee deferred distributions of less than $10.00 in order to limit administrative expenses. Thus, a creditor with a relatively small approved claim (less than approximately $2,500) did not receive a distribution. Creditors with such claims did not lose the funds they are entitled to, but will receive them when final distributions are made. At that time, the Trustee also deferred distributions to creditors then engaged in adversary proceedings with the Trustee, pending final adjudication of those matters.
The Trustee has now reached final adjudication of all actions commenced in its efforts to recover funds on behalf of the investors of Valley Mortgage. As of August, 2018, the Trust holds approximately $750,000 in collected funds, representing net proceeds of property sales, clawbacks, avoidance actions and claims against professionals. Approved claims now total over $16,000,000. Holders of approved claims may expect to receive between 4.5% and 5% of their claim amount. The Trustee has begun the process of wrapping up the VMI Liquidating Trust and final distribution checks were mailed on Friday, December 14, 2018.