Purpose of the Litigation Trust. The Litigation Trust is established for the sole purpose of prosecuting the Anadarko Litigation and liquidating and distributing the Trust Property, in accordance with the QSF Regulations, with no objective to continue or engage in the conduct of a trade or business. The Trustee shall, in an expeditious but orderly and reasonable manner, distribute the Trust Property, and not unduly prolong the duration of the Litigation Trust, subject to Section 4(c), below. The distribution of the Trust Property shall be accomplished by transferring such assets to the holders of Litigation Trust Interests, in the manner and in the proportions set forth herein. The Trustee shall prosecute or resolve the Anadarko Litigation with the goal of ensuring that any resolution or recovery will include cash, cash equivalents, promissory note(s) and/or marketable securities in an amount sufficient to make distributions of cash, cash equivalents, promissory note(s) and/or marketable securities to all Beneficiaries that would prefer to receive distributions in cash, cash equivalents, promissory note(s) and/or marketable securities rather than in another form of consideration, to the extent that such Beneficiaries timely advise the Trustee of such preferences.
Purpose of the Litigation Trust. On the Effective Date, the Non-Settling Defendant Claims and the Assigned Preference Claims shall be assigned to the Litigation Trust. The Litigation Trust will be authorized under the Plan to prosecute the Non-Settling Defendant Claims for the benefit of holders of Allowed General Unsecured Claims and Allowed 2015 Notes Claims who shall receive a Settlement Pro Rata Share of any net recoveries on Non-Settling Defendant Claims. The Litigation Trust is authorized to prosecute the Assigned Preference Claims for the benefit of (i) holders of Allowed General Unsecured Claims and 2015 Notes Claim, who shall receive a Settlement Pro Rata Share of 90% of any net recoveries on Assigned Preference Claims until the Excess Recovery Trigger Date, and (ii) the Reorganized Debtors, who shall receive 10% of any net recoveries on Assigned Preference Claims until the Excess Recovery Trigger Date, at which time they shall receive 1/3 of the net recoveries on Assigned Preference Claims; provided that, following the Excess Recovery Trigger Date, all Assigned Preference Claims against present or former employees of the Debtors shall be extinguished. To assist the Litigation Trust with respect to its initial analysis of Assigned Preference Claims, the Debtors shall provide to the Creditors’ Committee and the Settling Defendants a “preliminary preference report” by March 20, 2010, identifying potential preference payments and recipients. Notwithstanding the contents of such “preliminary preference report,” prior to making any demand to collect or commencing any legal action to collect an Assigned Preference Claim, the Litigation Trust shall confirm with the Reorganized Debtors, in writing, whether the target of any such demand or action is an Excluded Person. The Parties agree that should the Litigation Trust dispute the reasonableness of the Debtors’ designation of a Person as an Excluded Person (a “Disputed Excluded Person”), the Bankruptcy Court shall retain jurisdiction to resolve such dispute and the Parties waive their appellate rights concerning the Bankruptcy Court’s decision thereon, provided that, pending the Bankruptcy Court’s resolution of the dispute, claims and causes of action against the Disputed Excluded Person shall be expressly preserved for the benefit of the Litigation Trust and shall not be released under any pending plan of reorganization. The Debtors and the Creditors’ Committee shall work together to finalize procedures for resolution of such disputes, w...
