Comdisco trustee secures approval of settlement with SIP defendants

By Caroline Salls

Pittsburgh, Nov. 30 – Comdisco Holding Co., Inc. said the Comdisco litigation trustee received court approval of a settlement with the remaining defendants who executed promissory notes in connection with Comdisco, Inc.’s shared investment plan (SIP).

According to a news release, the U.S. Bankruptcy Court for the Eastern District of Illinois also approved the trustee’s motions for filing of a final report the termination of the litigation trust and discharge of the trustee and trust advisory board, effective only upon the wind-up of the trust and final disbursement of its net proceeds to the beneficiaries.

As previously reported, the trustee expects to be in a position to distribute roughly $1 million to beneficiaries.

Under the settlement, litigation defendants agreed to assign portions of contingent distribution rights (CDR) that they received as a result of the SIP, along with the associated distributions on those CDRs and accrued interest on those distributions to the trust. The trustee believes the value of the CDR assignment exceeds $480,000, according to the motion.

In addition, in order to facilitate the settlement and termination of the trust, Comdisco agreed to pay the defendants a lump sum of $200,000.

A status hearing is scheduled for April 1.

Comdisco emerged from Chapter 11 bankruptcy on Aug. 12, 2002. Comdisco Holding is a Rosemont, Ill., company formed to sell the assets of its predecessor Comdisco, Inc. and distribute the proceeds.

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