HERO Liquidating Trust On December 2, 2016, the Debtors’ Modified Joint Prepackaged Chapter 11 Plan (Incorporating Mediation Settlement) of Hercules Offshore, Inc.
and its debtor affiliates (“Plan”) became effective and their assets were transferred to the HERO Liquidating Trust.
The amount reported on a 1099-DIV represents the return of a shareholder’s investment.
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.
Why are Panel Trustees necessary for the Bankruptcy System? Chapter 7 bankruptcy is a liquidation legal proceeding.
The debtor may not have been granted a Chapter 7 discharge within the previous 6 years.
The debtor must not have had a previous bankruptcy dismissed for cause within the last 180 days.
Corporations in the process of a complete liquidation – either to terminate the business or change its structure to a non-corporate status -- are required by law to transfer all cash and property assets back to shareholders as payment in full for the exchange of stock.
Section 331(a) of the IRS tax code says that if a shareholder is eligible to receive a cash liquidation distribution totaling 0 or more, the distribution must be reported on Form 1099-DIV.