Replies to post #42822 on Humanigen Inc (fka HGENQ)

[SorcererGuru44]

Purpose of liquidating Trust found on page 39 and 42 of the Combined Plan:

The Liquidating Trust shall be established for the purpose of liquidating the Liquidating Trust Assets, prosecuting any Causes of Action transferred to the Liquidating Trust to maximize recoveries for the benefit of the Liquidating Trust Beneficiaries, and making Distributions in accordance with the Combined Plan and Disclosure Statement to the Liquidating Trust Beneficiaries, with no objective to continue or engage in the conduct of a trade or business in accordance with Treas. Reg. § 301.7701-4(d).

If you are curious of the reference at the end, that is from the Code of Federal Regulations, specifically 26 CFR § 301.7701-4(d) which basically says if the Liquidating Trust takes too long it will lose its classification as a trust. Or on the opposite end of the spectrum, if the Liquidating Trust does something that may constitute the continuance of a profitable business it will lose its classification as a trust. Information related to 26 CFR § 301.7701-4(d) can be found here:

https://www.law.cornell.edu/cfr/text/26/301.7701-4