Hi Del,
Yes, the Libor trial is plodding along, and if it extends out to completion (assuming no settlement) maybe the FDIC is looking at recoveries in -what 2026/2027 based on court timetable, plus undoubted Fed/SCOTUS appeals on judgment....
But, is that really how long, we as shareholders in UWBKQ will have to wait for BK closure and partial equity compensation?
The evidence -from personal observation is that the estate will close before the FDIC finishes exercising their legal claims inherited from the UWB receivership.
DOCKET #725 9-22-21
[NOTE DATE: THIS IS APPROX. 1 MONTH BEFORE LAST RECORDED FILING #730 9-24 -swami]
" 6.The Trustee is therefore preparing to close this Case....The Trustee filed a Motion for Order Approving Abandonment of Asset concerning the Bank Stock on July 29, 2021 [Docket No. 710], which was granted by the Order dated August 25, 2021 [Docket No. 719].
9.The Trustee now wishes to address other assets that the estate technically owns but which have no value. The purpose of this Motion is to remove these assets from UWBI’s balance sheet and tax return to support an anticipated filing with the Internal Revenue Service requesting a Director’s Determination that UWBI need not file tax returns in the future after this Case is closed..... "
"The Trustee is advised that to receive IRS permission to “deconsolidate” and terminate UWBI’s responsibility it must demonstrate to the IRS that UWBI is effectively dissolved by virtue of it having no assets and no prospects of receiving any income after the case is closed. The Trustee is informed and believes that all of the businesses, including UWBI subsidiaries, except for the Bank, are worthless and have no ongoing operations....Therefore, the Trustee is filing this Motion to obtain an Order to support the position before the IRS that in fact after this Case is closed UWBI will own no assets and has no prospects of future income."
Swami here again. Translating the above -this was a motion requesting an
affirming order by the court which would then allow an IRS Director to examine UWBQ BK7 and make the determination that UWBI BK7 can close out and the burden of any future tax filing is removed.....
The BK court approved this request one month later, with filing #729.
So, we IMO have been waiting on the IRS to make this determination.... going on 10 months now, to close us out. This delay really should be no surprise to any here, considering that many taxpayers (myself included) who filed far simpler 2021 paper tax refunds, endured 7-8 months of delay, due (as was explained by IRS website) in part to long-term understaffing exacerbated by COVID-19.
More proof is found in filing #713:
"3. All claims and litigation have been resolved and the Trustee is preparing to close this case...The FDIC Receivership of UWB is ongoing and the Trustee does not know how much longer the Receivership will continue before it is wound up.....When this case is closed, UWBI will have no assets and no income and therefore no reason to file future tax returns. There is a possibility, however, that the Receivership will have income in the future and thus may be required to file one or more tax returns. 7.After consultations with the FDIC and tax professionals, the Trustee has determined that the best approach to this issue is to “deconsolidate” UWBI from the consolidated group, which would mean that each entity would file its own tax return. Because none of the other subsidiaries are still in business, as a practical matter the result would be the FDIC would file a tax return for the Bank if the Receivership generates income in the future."
Wild huh, the FDIC will do our taxes if they recover for us in Libor!
It's clear from the filing that the trustee saw an open-ended claim battle with Libor -just as we are experiencing. The BK has NO intention of remaining open (short of settlement) for the duration of this trial. We wait on the IRS!
All above is my opinion, and hope this was helpful.
