Castle Arch Real Estate Investment Company, LLC
Case #11-35082 JTM (Lead Case)

Affiliated Entities

Case #11-32237 - CAOP Managers, LLC
Case #11-35240 - Castle Arch Opportunity Partners I, LLC
Case #11-35241 - Castle Arch Opportunity Partners II, LLC
Case #11-35242 - Castle Arch Kingman, LLC
Case #11-35246 - Castle Arch Smyrna, LLC
Case #11-35243 - Castle Arch Secured Development Fund, LLC
(Jointly Administered)


Frequently Asked Questions

Is there anything I can do now?

The bankruptcy process can be a challenging, difficult, and sometimes frustrating process for creditors and investors. The Trustee is currently analyzing the numerous complex issues surrounding the various bankruptcy cases. It is advised that you remain patient. It will take some time for the Trustee to investigate, identify, and determine the nature of all assets, analyze allowable claims and interests, and ultimately make a determination as to any potential reorganization and the amounts to be distributed on allowed claims or interests, if any.

I am an investor in one of the Debtors. How much will I received from my investment(s)?

The Trustee is unable to estimate at this time whether there will be assets to distribute to creditors or to investors. There are numerous complex factors and issues that will need to be investigated and resolved before a determination can be made.

Is there a deadline for filing a Proof of Claim with the Bankruptcy Court?

The deadlines for filing a Proofs of Claim or Interest in the Castle Arch cases was February 21, 2012 for Proofs of Claim, April 16, 2012 for Government Proofs of Claim, April 20, 2012 for Proofs of Interest, August 21, 2013 for Administrative Claims (Non-Professionals), and September 5, 2013 for Professional Administrative Claims . See the Claims page for additional information.

What if I missed the deadline?

You should consult with your attorney.

When will my claim be paid?

Claims are ultimately paid according to the provisions of the confirmed Plan. The Plan became effective on July 22, 2013 and Effective Date payments were paid as required by the Plan. The Trustee is anticipating making an initial distribution to the investors of CAOPII by end of September 2013.

On October 2, 2013, the Trustee of the CAOP II Trust made an initial distribution to preferred investors holding Class C5 equity interests as identified in the confirmed Plan. This initial payment represents a distribution of 22.98% of the allowed Class C5 equity interests. Enclosed with the distribution checks was an important notification that should be read immediately. This notification indicates that the distribution checks has been prepared and issued based on the information contained in the amended Bankruptcy Schedules, tax returns, and other Debtor records. The Trustee has made efforts to issue the distribution checks to the correct payee. However, due to missing, incomplete, or erroneous records of the Debtor, the initial distribution check may not be issued to the appropriate Individual Retirement Account ("IRA") or other qualified retirement plan administrator. If your CAOP II investment is held in an IRA or other qualified retirement plan and the initial distribution check has not been issued directly to your IRA or retirement plan administrator, the check should be forwarded immediately to your IRA or retirement plan administrator for immediate deposit into your IRA or other qualified retirement plan account, to avoid potential tax liability and early distribution penalties. Please consult your IRA, qualified plan administrator, or tax advisor for further advice.

On May 15, 2015, the Trustee of the CAOP II Trust made a second distribution to preferred investors holding Class C5 equity interests as identified in the confirmed Plan. This payment represents a second distribution of 11.49% of the allowed Class C5 equity interests. The total distributions to date total 34.47% of the allowed Class C5 equity interests. Enclosed with the distribution checks was an important notification that should be read immediately. This notification indicates that the distribution checks have been prepared and issued based on the information contained in the amended Bankruptcy Schedules, tax returns, and other Debtor records. The Trustee has made efforts to issue the distribution checks to the correct payee. However, due to missing, incomplete, or erroneous records of the Debtor, the distribution check may not be issued to the appropriate Individual Retirement Account ("IRA") or other qualified retirement plan administrator. If your CAOP II investment is held in an IRA or other qualified retirement plan and the initial distribution check has not been issued directly to your IRA or retirement plan administrator, the check should be forwarded immediately to your IRA or retirement plan administrator for immediate deposit into your IRA or other qualified retirement plan account, to avoid potential tax liability and early distribution penalties. Please consult your IRA, qualified plan administrator, or tax advisor for further advice.

The timing of distributions, if any, to the creditors and investors of the Legacy Debtors and CAOP I will be dependent on the liquidation of remaining assets and resolution of outstanding claims. Given the nature of the remaining assets and complexity of certain claims of the Legacy Debtors and CAOP I, this process could take a significant amount of time to complete.

What if my address changes subsequent to the filing of my Proof of Claim or Proof of Interest?

You will need to file a Notice of Change of Address with the Bankruptcy Court.

When will the Plan of Liquidation be Confirmed?

On September 29, 2012, the Trustee filed with the Bankruptcy Court: (1) a proposed Disclosure Statement for Chapter 11 Trustee’s Plan of Liquidation Dated September 29, 2012 (the "Proposed Disclosure Statement"); and (2) the proposed Chapter 11 Trustee’s Plan of Liquidation Dated September 29, 2012 (the "Proposed Plan").

On October 11, 2012, the Trustee filed a Motion to approve the adequacy of information in the Proposed Disclosure Statement and his proposed procedures for soliciting votes on the Proposed Plan. Prior to the objection deadline, five objections were filed with the Court on November 26, 2012. The preliminary hearing for this Motion was heard on December 3, 2012 at 2:00 pm. At the hearing, a final hearing for the Proposed Disclosure Statement was set for January 31, 2013. As a result of the responses by several parties, the Trustee determined in his business judgment to address the substantive consolidation issues prior to finalizing the Amended Proposed Disclosure Statement and seeking confirmation of his Proposed Plan. A motion for substantive consolidation of CAREIC, CAOP Managers, CAK, CAS, CASDF, and a Castle Arch Star Valley, LLC was filed by the Trustee on December 28, 2012. The hearing for the substantive consolidation motion was held on January 31, 2013. As a result of the hearing, the motion was approved by the Court. On February 8, 2012, the Court entered an Order and Findings of Fact granting substantive consolidation. On February 25, 2013, the Trustee filed an Amended Proposed Disclosure Statement. The final hearing on the adequacy of the Amended Proposed Disclosure Statement was held on March 21, 2013. At this hearing, the Bankruptcy Court approved the adequacy of the Amended Proposed Disclosure Statement with some additional modifications presented at the hearing. As a result, the revised First Amended Disclosure Statement was prepared (See below link) and served on parties of interest along with the revised Plan and individual voting ballots. The deadline for return of voting ballots was May 13, 2013. The Trustee received sufficient votes in support of the Plan and no objections were filed in opposition to the confirmation of the Plan. The confirmation hearing for the Plan was held on May 30, 2013 and the Court executed an Order confirming the Plan on June 7, 2013. As a result, the Plan became effective on July 22, 2013. Below are various key documents relating to the confirmation of the Plan.

I received multiple Voting Ballots for the Plan of Liquidation, Do I need to executed and return all Voting Ballots that I received?

Yes. If you are entitled to vote on the Trustee’s proposed Plan of Liquidation, you will receive a Voting Ballot(s) along with a copy of the Court-approved Disclosure Statement and proposed Plan. You must execute and return the Voting Ballot(s) to have your vote(s) counted.

Certain claim and interest holders will receive more than one Voting Ballot as a result of the nature of the person’s holdings. If you receive more than one Voting Ballot, please be sure to EXECUTE and RETURN ALL VOTING BALLOTS THAT YOU RECEIVE. The Trustee can only count those Voting Ballots that are actually executed and received prior to the Voting Deadline of May 13, 2013.

When will my 2016 Tax Documents be provided?

The Trustee has completed the 2016 income tax returns and grantor letters. Grantor letters were mailed out in early July 2017.

Submit a Question

Since the Trustee’s appointment, he has been getting a large volume of calls from creditors, investors, and other interested parties. The Trustee has been attempting to return as many calls as possible, however, the volume is substantial. Many of the parties have similar questions. The Trustee hopes his website will answer many of these common questions. Additionally, if there are questions that are not addressed on the website, the Trustee has included a link for you to submit your question in an effort to manage the communications and limited resources of estates. While the Trustee can’t guarantee the individual question will be answered and addressed given the volume of parties, he anticipates reviewing, compiling, and addressing common questions that are submitted on the FAQ’s page on a periodic basis.

Submit a question

The information contained on this page is provided for informational purposes only. This page does not purport to include all Trustee-related information relating to the Castle Arch bankruptcy cases which may affect your legal rights. The information on this page is subject to change without notice, and the accuracy of the information is not guaranteed. You are not justified in relying on any of the information provided on this page. You should immediately consult competent professionals (a) to determine your rights and obligations, (b) to identify hearings and deadlines that may affect your rights or obligations, (c) to independently verify all dates and deadlines that may affect your rights and obligations, and (d) to protect your rights and to preserve your rights in the Castle Arch bankruptcy cases.

Last Updated 7/13/2017 11:44:47 AM