I am working toward the goal of trying to finish the work of the Trust and close the Trust as soon as possible. As you know I am also the distribution agent for the Class case.
In order to do that, I must deal with the following matters: (1) the oil and gas rights in Shreveport, Louisiana, (2), amounts still due from the settlement reached with Roy MacDowell; (3) a small debt that remains to be paid relating to obligation in the SVLG lawsuit. As I am sure you will appreciate, because I am negotiating with outside parties on each of these matters, I must be careful and limit the details that I discuss in order to avoid sharing information with the other side and compromising my ability to complete these negotiations with the best outcome for the Trust.
Some of you have expressed concern about whether I am keeping the Trust alive to earn additional fees for myself or counsel. To put this matter to bed, I am interested in closing the Trust at the earliest feasible time, and I do not believe that there will be further distributions other than the Class Distribution. To be more clear, the Trust has little cash, and will require some cash just to effect a closing and file final tax returns. Neither I nor my counsel is receiving any payments from the Trust at this time and neither has received any payments since October of 2013 nor do we expect any.
Shreveport. I am sure most of you know from the newspaper that oil and gas prices are low, have been low for some time, and will likely be low for some time. The current monthly royalty received by the Trust is about $850, and one-half of that must be paid toward an expense debt due from the SVLG case. I am exploring all alternatives.
MacDowell. While MacDowell, still owes money to the Trust, he is delinquent in his payments and it does not appear he has a source of steady income or any assets that would produce better results. I am exploring various alternatives to resolve this, but the prospects of further significant payments from him do not seem promising, and it is unclear whether it would be cost-effective to pursue him.
Debt to SVLG. The Trust still owes a debt for SVLG expense to an outside party, and I am exploring how to resolve this for a lower amount, given the state of the Trust’s finances.
The Class. I am holding about $500,000 to distribute. I need certain information from counsel to the Class concerning a few claims the owners of which are disputed, but I hope to set those few items to the side and distribute the balance to the rest of the Class members before September 30th.
As soon as there is progress and anything further to report on any of these items, I will update my report to you. Thank you for your continued patience.
Gerard A. McHale, Jr.
Attachments: Cash Balance Report as of August 31, 2015.pdf