Public information maintained by the Creditor Trust
Administrator for the RCS Creditor Trust

Chapter 11 Website for RCS Capital Corporation, et al.

Claims Register for RCS Capital Corporation, et al.

Creditor Trust Agreement

Trust Pursues Claims against Schorsch and ARC Parties Seeking to Recover Damages for Trust Beneficiaries.

On March 8, 2017, the RCS Creditor Trust filed a complaint in the Delaware Chancery Court against Nicholas Schorsch and certain of his colleagues (including Edward Weil, Jr., William Kahane, Peter Budko, Brian Block and Louisa Quarto), as well as certain entities owned and/or controlled by Schorsch and his colleagues, including RCAP Holdings LLC and AR Capital LLC. The complaint seeks to recover damages for the benefit of holders of General Unsecured Claims against certain of the RCS Debtors (and, to the extent applicable, holders of Second Lien Deficiency Claims) resulting from a scheme by Schorsch and his colleagues to exploit their control of RCS to benefit their wholly owned fund management business. The Complaint asserts claims for (i) breach of fiduciary duty, (ii) aiding and abetting breach of fiduciary duty, and (iii) unjust enrichment and constructive trust. A copy of the complaint is available here.

Trust Establishes Disputed Claims Reserve for RCS

On March 6, 2017, the Delaware Bankruptcy Court entered an order authorizing the Creditor Trust to establish a Disputed Claims Reserve for Series A-1 Class A Units, and authorized the Creditor Trust to reserve Series A-1 Class A Units in an amount as if all Disputed General Unsecured Claims against RCS were allowed in an aggregate amount not exceeding $64 million. A copy of the order establishing the Disputed Claims Reserve is available here. A copy of the motion seeking to establish the Disputed Claims Reserve is available here.

In addition to the amounts reserved for Disputed General Unsecured Claims against RCS, as set forth in the motion, (i) approximately $106 million in claims were allowed pursuant to the RCS Debtors’ Plan, and (ii) approximately $1.87 million in claims have been allowed against RCS since the Effective Date of the Plan. The reserve motion provides additional information as to the status of the Creditor Trust’s claims resolution process, and the categories of Disputed General Unsecured Claims that are the subject of the Disputed Claims Reserve.

Dates

December
16
N/A

Trust Unit Distribution

Parties

Creditor Trust Administrator

AMJ Advisors LLC

999 Central Avenue
Suite 208
Woodmere, NY   11598
Phone: 516.791.1100
Fax: 212.937.2300
Alan M. Jacobs, President
ALANMJACOBS@AMJADVISORS.COM

Counsel to the RCS Creditor Trust

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas
New York, NY   10036
http://www.kramerlevin.com
Phone: 212.715.9100
Fax: 212.715.8000
Stephen D. Zide
Gregory A. Horowitz
Rachael L. Ringer
David Z. Braun

United States Trustee and Court Information

Office of the United States Trustee

844 King St
Suite 2207
Wilmington, DE   19801
http://www.justice.gov/ust/r03/wilmington/index.htm
Phone: 302.573.6491
Fax: 302.573.6497
Linda J. Casey

United States Bankruptcy Court

District of Delaware
824 Market Street North
3rd Floor
Wilmington, DE   19801
http://www.deb.uscourts.gov
Phone: 302.252.2900