Dear Victims, Creditors and Interested Parties:

 

       We wanted to update you on the status of certain settlements and the status of the “Wave II” distribution.  As previously reported, settlement agreements have been reached with Lockton and Bank of America/Countrywide. Payment of the settlement amounts are not due until approval of the settlements by the class action court is final and non-appealable.   The final approval hearing for the settlement agreements is set to be heard by the class action court August 30, 2010.   The appeal period runs for 30 days after an order is entered.  The Class counsel will then direct the release of the distribution amount; checks will be sent out in approximately 7 – 10 days after final notice of amount and direction from Class counsel.  Based on this, it would appear that the Wave II distribution from the Qualified Settlement Fund will be made in the later half of October.  We anticipate that the class distribution will represent approximately 5% of claims.  

 

The second distribution from the bankruptcy estate will occur at approximately the same time.  We currently estimate that distribution will be in the 7% range.  

 

We will keep you updated as continued progress is made.  

Best Regards,

THE 1031 DEBTORS LIQUIDATION TRUST