DSI is serving as the Trustee of this state law created Creditor Trust.
The Trust was formed by order of the Superior Court after the California Department of Managed Health Care sought and obtained the appointment of a conservator for the company in October 2001.
- Chair of Creditors’ Committee in Chapter 11 of post-conservatorship debtor
- General unsecured creditors of the Foundation recovered in excess of 90 percent of their claims
Upon the effective date of the Trust, cash and real property assets were transferred to the Trustee for administration. Included in the transferred assets were various pieces of real property, including the Watts Community Garden, which was sold to The Trust For Public Land as a cornerstone of its efforts to generate more neighborhood parks in close proximity to dense population areas.
General unsecured creditors of the Foundation recovered in excess of 90 percent of their claims from the Trustee’s efforts. DSI also served as co-chair of the Official Committee of Unsecured Creditors when the post-conservatorship debtor filed for bankruptcy.