UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) June 21, 2007
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CATSKILL LITIGATION TRUST
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(Exact name of registrant as specified in charter)
Delaware 333-112603 16-6547621
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
c/o Christiana Bank & Trust Company, 1314 King Street, Wilmington, Delaware 19801
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (302) 888-7400
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (SEE General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On June 15, 2007, the trustees of the Catskill Litigation Trust (the
"Litigation Trust") entered into an amendment to the Declaration of Trust, dated
January 12, 2004, establishing the Litigation Trust (as amended, the
"Declaration of Trust"). The Litigation Trustees had previously received the
approval of more than 66 2/3% of the Unitholders of the Litigation Trust to this
amendment, entitled "Amendment No. 2 to the Declaration of Trust of Catskill
Litigation Trust" ("Amendment No. 2"), pursuant to Section 9.3 of the
Declaration of Trust. A copy of Amendment No. 2 is being filed as Exhibit 3.1 to
this Current Report on Form 8-K.
As previously announced, on January 24, 2007, the Litigation Trust entered
into a Joint Alliance Agreement with the St. Regis Mohawk Tribe providing for
the assignment to the Litigation Trust of certain claims of Tribal members
against Park Place Entertainment, Inc. and Clive Cummis, former General Counsel
of Park Place Entertainment, Inc. The Joint Alliance Agreement provided that the
claims were to be assigned in exchange for a certificate evidencing the
ownership by the Tribal members of 21,912,869 Units in the Litigation Trust
(representing a 50% beneficial interest in the Litigation Trust). In accordance
with its terms, Amendment No. 2 became effective upon satisfaction of the
condition that the claims of the Tribal members were duly and properly assigned
to the Litigation Trust in accordance with the Joint Alliance Agreement. Such
assignment was approved by the St. Regis Mohawk Tribal Court as described in
Item 7.01 below.
Pursuant to Amendment No. 2, the claims assigned to the Litigation Trust
will become part of the Trust Estate and the Enrolled Members of the St. Regis
Mohawk Tribe will become beneficiaries of the Litigation Trust. As a result, the
Litigation Trust will prosecute such claims in addition to its existing claims
and the Enrolled Members of the St. Regis Mohawk Tribe and any proceeds of such
claims will be deposited in the Recovery Account established under the
Declaration of Trust and will be available for distribution to Unitholders,
including such Enrolled Members, in accordance with the terms of the Declaration
of Trust.
In addition, pursuant to Amendment No. 2, Dennis C. Vacco, former Attorney
General of the State of New York and former United States Attorney for the
Western District of New York, will assume the role of a Litigation Trustee for
the Litigation Trust and Paul de Bary, who previously served as a Litigation
Trustee, will assume the role of Litigation Trustee Advisor. To further
implement the merger of claims, Amendment No. 2 also provides certain changes in
the Declaration of Trust with respect to payment of expenses, indemnification
and further amendments to the Declaration of Trust.
ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF
CERTAIN OFFICERS.
See Item 1.01.
ITEM 7.01. REGULATION FD DISCLOSURE.
On June 21, 2007, pursuant to the Joint Alliance Agreement, the trustees
of the Catskill Litigation Trust received an assignment of certain claims of
members of the St. Regis Mohawk Tribe against Park Place Entertainment and Clive
Cummis. The assignment was previously approved by the St Regis Mohawk Tribal
Court. Following the assignment, on June 22, 2007, Dennis C. Vacco and Joseph
Bernstein, acting in their capacities as Litigation Trustees of the Litigation
Trust, filed an enforcement action in the United States District Court for the
Northern District of New York. The enforcement action was filed against Harrah's
Operating Company, Inc. (a wholly owned subsidiary of Harrah's Entertainment ,
Inc. (HET)), as successor to Park Place Entertainment, Inc., and Clive Cummis to
enforce an order of default judgment issued by the St. Regis Mohawk Court on
March 20, 2001 against Park Place Entertainment, Inc. and Clive Cummis. The
order of default judgment ordered the defendants to pay $1.782 billion of actual
damages and $5 million of punitive damages. The Litigation Trust has also filed
a motion in the St. Regis Mohawk Tribal Court for a determination of the rate of
interest which should apply to the judgment under Mohawk law. A previous suit to
enforce the default judgment was dismissed, without prejudice to the
recommencement of the suit, after the Judge had not heard further from the
parties concerning efforts to settle the case. Harrah's Entertainment, Inc., the
parent of Harrah's operating company, has indicated in its public filings that
it believed that the case had been settled and intends to vigorously defend any
attempt to enforce the judgment.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(a) Exhibits.
3.1 Amendment No. 2 to the Declaration of Trust of Catskill
Litigation Trust
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CATSKILL LITIGATION TRUST
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(Registrant)
Date: June 22, 2007
By: /s/ Joseph E. Bernstein
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Joseph E. Bernstein
Litigation Trustee
