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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
July 9, 2003 Trustee's Report EVERGREEN SECURITY, LTD CASE NO. 01-00533-6B1 TRUSTEE REPORT TO CREDITORS' COMMITTEE July 9, 2003 Ladies and Gentlemen: My last report to the Committee was April 21, 2003. This report will not repeat my prior reports, which can be found at www.evergreencreditorscommittee.com. I have changed the format of my report to a summary form, which I hope adds to its readability. I would appreciate your comments on this format. The following table outlines the status of the litigation at June 30, 2003:
The broker test case against Harold James Kime and First American Life and Health Insurance Corporation resulted in judgements against the defendants for over $192,000. The defendants have filed an appeal. I have asked the Court to order mediation in the remaining broker cases. The broker cases dismissed were primarily due to not having documentation for the payment of commissions to the brokers. The Zylka et al defendants, which are pending, include individuals and businesses who received part of the $27.7 million taken from Evergreen by William J. Zylka and James P. Conroy. Mr. Zylka pleaded guilty and Mr. Conroy was convicted in New York for their parts in the funds taken. These suits are in various stages of discovery and should be tried during 2003 and possibly into 2004. The "Other" suits include suits against law firms, accounting firms, investment advisory firms, custodians, trustees, consultants, directors and the initial owner of Evergreen. Also included is a suit against Mr. Zylka, Mr. Conroy and his law firm, which is being heard in Federal District Court. These "Other" suits are in various stages of discovery and will be tried in 2003 and 2004. Evergreen funds in excess of $5.5 million have been deposited to the bankruptcy accounts since my appointment through June 30, 2003. Additional funds will be obtained through the sale of assets recovered from: the liquidation of Surety Bank, the sale of stock, real estate and personal property from the settlement with the Zylka family members, and the sale of two lots in North Carolina recovered from one of the managers. The pending litigation, however, will provide the most significant source of recovery for Evergreen. The claims objection process has nearly been completed. The Court has issued orders approving the objections with no responses and those which have been resolved. Most of the claim objections have been resolved, with the exceptions of two trustees who will not identify their underlying investors and a few individual claims. A final claims objection hearing is scheduled for August 4, 2003 at 1 PM. If you would like to provide me with any information in this case, please mail, fax or e-mail it to me. I have changed my contact information from those listed in previous reports. I have listed my numbers below. You should continue to contact the Creditors’ Committee web site for information in this case. Also many newspapers have carried articles about this case. The largest collection of articles can be found at www.orlandosentinel.com. R. W. (Bill) Cuthill, Jr., CPA, CFE Chapter 11 Trustee 341 N. Maitland Ave., Suite 210 Maitland, Fl 32751 Phone 407-644-3781 ext. 235 Fax 407-644-3943 e-mail rcuthill@msn.com |
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |