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.

On May 26, 2017, the Defendants in the Delaware action filed a motion to dismiss certain claims asserted in the Creditor Trust’s complaint.  A copy of the brief in support of the motion to dismiss is available here.

On July 24, 2017, the Creditor Trust filed a response to the Defendants’ motion to dismiss,which can be found here.

On November 30, 2017, the Delaware Chancery Court entered an order granting in part and denying in part the Defendants’ motion to dismiss. The opinion (available here) denied the Defendants’ motion to dismiss the “core claim” asserted by the Trust against the Defendants on the basis that, among other things, the allegations in the complaint “state a claim for breach of the duty of loyalty.” The opinion further invited supplemental briefing on the viability of the Trust’s claims for unjust enrichment and aiding and abetting breach of fiduciary duty.

On January 10, 2018, the Defendants filed a supplemental brief in support of their motion to dismiss, and on February 12, 2018, the Trust filed a responsive supplemental brief in opposition to the defendants’ supplemental brief in support of their motion to dismiss.  A copy of the Defendants’ brief can be found here and the Trust’s brief can be found here

On January 31, 2018, the Creditor Trust filed an adversary complaint  in the Delaware Bankruptcy Court against certain claimants, including Nicholas Schorsch and certain of his colleagues, and certain entities owned and/or controlled by Schorsch and his colleagues, seeking to equitably subordinate and/or recharacterize over 85 secured and unsecured claims filed by these parties against the Debtors in the chapter 11 cases and to avoid allegedly preferential payments the Debtors made to one of the Schorsch-controlled entities.  A copy of the complaint may be found 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.

Tax Information for Unitholders

Information for holders of Trust Units relating to certain tax items to be reported by such holders in their 2016 U.S. federal and state income tax returns is available here.



Trust Unit Distribution


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

Counsel to the RCS Creditor Trust

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas
New York, NY   10036
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
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
Phone: 302.252.2900