sample business plan for online dating site - Anza shareholders liquidating trust

Our services do not replace lawyers, investment bankers or accountants, but our involvement can make their work more cost effective.

The mechanics of transitioning to a liquidating trust are straightforward, but are not standard fare for these high priced professionals.

anza shareholders liquidating trust-67anza shareholders liquidating trust-12

Anza shareholders liquidating trust

Transactions of internal shareholders/big shareholders and their related persons 1.

List of internal shareholders and their related persons: Please see attached list 2.

For companies with certain types of illiquid but valuable intellectual property, the liquidating trust’s simplicity and lower cost can make it superior to other alternatives.

For example, for a small biotech with drug development programs out licensed to third parties, the liquidating trust can be a cost effective way to collect milestones and royalties for a period of time while open issues are resolved and a transaction can be closed to monetize the licensor interest.

331 when they receive the liquidation proceeds in exchange for their stock.

If the corporation distributes its assets for later sale by the shareholders, the assets generally “come out” of the corporation with a basis equal to FMV (and with the related recognition of gain or loss under Sec.

In the role of liquidating trustee, (beginning before the trust is formed) we administer and manage the liquidating trust to sell remaining assets, settle open contracts, pay creditors and distribute any available funds to the company’s former stockholders. On the contrary, we prefer to be retained early enough in the wind down process to avoid insolvency and transition smoothly from the public entity to the liquidating trust structure.

A liquidating trust is a new legal entity that becomes a successor in interest to the liquidating company at the point the company dissolves and all its assets and liabilities move to the trust.

331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits (E&P).

Tags: , ,