Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information | |
Entity Registrant Name | Adelphia Recovery Trust |
Entity Central Index Key | 1433669 |
Document Type | 10-K |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Smaller Reporting Company |
Entity Public Float | $0 |
Entity Common Stock, Shares Outstanding | 0 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Cash and cash equivalents | $36,323,412 | $36,081,284 |
Prepaid assets | 581,324 | 639,198 |
Note and accrued interest receivable | 5,604,966 | 7,338,876 |
Total assets | 42,509,702 | 44,059,358 |
Liabilities and net assets | ||
Accrued expenses | 83,412 | 71,342 |
Deferred holder distributions | 101,123 | 99,979 |
Total liabilities | 184,535 | 171,321 |
Net assets | 42,325,167 | 43,888,037 |
Total liabilities and net assets | $42,509,702 | $44,059,358 |
Statements_of_Operations_and_C
Statements of Operations and Changes in Net Assets (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | ||||||||||
Interest income | $82,599 | $106,899 | $106,056 | $105,224 | $105,473 | $105,693 | $106,562 | $103,104 | $400,778 | $420,832 |
Total revenues | 82,599 | 106,899 | 106,056 | 105,224 | 105,473 | 105,693 | 106,562 | 103,104 | 400,778 | 420,832 |
Operating expenses | ||||||||||
General and administrative expenses | 317,099 | 311,033 | 311,079 | 686,604 | 328,833 | 331,497 | 352,983 | 696,570 | 1,625,815 | 1,709,883 |
Professional expenses | 98,374 | 80,498 | 55,517 | 103,444 | 143,147 | 76,263 | 58,675 | 83,807 | 337,833 | 361,892 |
Total operating expenses | 415,473 | 391,531 | 366,596 | 790,048 | 471,980 | 407,760 | 411,658 | 780,377 | 1,963,648 | 2,071,775 |
Net loss | -332,874 | -284,632 | -260,540 | -684,824 | -366,507 | -302,067 | -305,096 | -677,273 | -1,562,870 | -1,650,943 |
Net assets, beginning of year | 43,888,037 | 45,538,980 | 43,888,037 | 45,538,980 | ||||||
Net assets, end of year | $42,325,167 | $43,888,037 | $42,325,167 | $43,888,037 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | ||
Net loss | ($1,562,870) | ($1,650,943) |
Changes in operating assets and liabilities: | ||
Prepaid assets | 57,874 | -229,993 |
Note and accrued interest receivable | 1,733,910 | -389,999 |
Accrued expenses | 12,070 | -248,343 |
Deferred holder distributions | 1,144 | 99,979 |
Net cash used by operating activities | 242,128 | -2,419,299 |
Net change in cash and cash equivalents | 242,128 | -2,419,299 |
Cash and cash equivalents, beginning of period | 36,081,284 | 38,500,583 |
Cash and cash equivalents, end of period | $36,323,412 | $36,081,284 |
Nature_and_Purpose
Nature and Purpose | 12 Months Ended |
Dec. 31, 2014 | |
Nature and Purpose | |
Nature and Purpose | |
1.Nature and Purpose | |
The Adelphia Recovery Trust (the “ART”) is a Delaware statutory trust. The ART was created at the expense of Adelphia Communications Corporation (“Adelphia”) and certain of its subsidiaries (together with Adelphia the “Debtors”). The ART was established on February 13, 2007 pursuant to the First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization of Adelphia Communications Corporation and Certain Affiliated Debtors (the “Plan”), which was confirmed by the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) by an order dated January 5, 2007. The ART became effective February 13, 2007 (the “Effective Date”). The ART holds certain litigation claims transferred to it pursuant to the Plan against various third parties (the “Causes of Action”). The Causes of Action transferred to the ART for resolution were recorded at the nominal amount of $1. The ART exists to resolve the Causes of Action through litigation or settlement for the holders of interests (the “Holders”) in the ART. The Holders on the Effective Date were the restitution fund established under the Plan by the U.S. Treasury (the “Restitution Fund”) and certain creditors and equity holders of the Debtors. The ART will distribute to the Holders the net proceeds from resolving the Causes of Action, less amounts withheld for the costs of administering the ART and prosecuting the remaining Causes of Action. | |
The Plan provides that the ART shall dissolve upon the earlier of the Distribution of all of its assets to the Holders or the fifth anniversary of its creation which was on February 13, 2012, subject to the right of the Trustees to extend the ART’s term with the approval of the Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). In November 2011, the ART filed a motion to extend the term of the ART through December 31, 2014 because several Causes of Action were unlikely to be resolved prior to February 13, 2012. In December 2011 the motion was granted by the Bankruptcy Court. In July 2014, the ART filed a second motion to extend the term of the ART in light of the current status of the Causes of Action and the administrative tasks to be performed after the Causes of Action are resolved. On September 23, 2014 the Bankruptcy Court approved an extension through September 23, 2015. The Bankruptcy Court may approve additional extensions to resolve the Causes of Action, distribute the net proceeds to Holders or complete other administrative responsibilities of the Trustees. | |
The ART is administered by five individual Trustees who were appointed by creditors of the Adelphia estate. The ART had no employees through December 31, 2014. The Trustees engage third party professionals and others including a Trust Administrator, which along with Adelphia, assist the Trustees in administering the activities of the ART. The Trustees have the duty and authority to take actions necessary to protect, maintain, liquidate to cash and maximize the Causes of Action, whether by litigation, settlement or otherwise. The time frame for ultimate resolution of any of the Causes of Action cannot be estimated. For a description of the ongoing Causes of Action see Note 8. | |
On the Effective Date, Adelphia contributed $25.0 million to the ART and paid certain expenses of the ART, to fund the initial costs of operation. Additional amounts appropriate to prosecute outstanding Causes of Action or otherwise fund the activities of the ART will be obtained from any proceeds received from resolved Causes of Action, through earnings on ART investments or through loans from third parties including Adelphia. These amounts, and any amounts held pending Distribution to the Holders, will be the only amounts held by the ART. | |
Pursuant to the Plan and the Declaration, the Trustees are permitted to retain amounts for contingent and future costs and expenses. Pursuant to the Plan and the Declaration, all Distributions are net of any costs and expenses incurred by the ART in connection with administering, litigating or otherwise resolving the various Causes of Action of the ART. | |
The Distribution of any net proceeds from settlements or judgments are made at the sole discretion of the Trustees in accordance with the provisions of the Plan and the Declaration. On December 21, 2010 the ART made a Distribution of $215.0 million in cash to the Holders of Interests in the Trust in accordance with the waterfall priority established in the Plan. A record date of December 13, 2010 was established by the Trust for purposes of this Distribution. No Distributions were made in 2011. The Trustees made two Distributions in 2012, one on March 1, 2012 for $30 million with a record date of February 23, 2012 and one on December 18, 2012 for $30 million with a record date of December 10, 2012. No Distributions were made in 2013 or 2014. | |
The ART Trustees will continue to retain cash in reserve to administer the ART and fund the prosecution of the Causes of Action and will continue to assess the adequacy of funds held for all potential costs and expenses of the ART and will distribute ART excess assets, if any, to Holders. No Distributions are currently planned. If and when future Distributions occur, they will be made according to the waterfall priority established in the Plan and discussed herein. Any assets not previously distributed by the ART, and that are not required for remaining costs and expenses, will be distributed in accordance with the Trust Declaration upon the dissolution of the ART. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies | |
Significant Accounting Policies | |
2.Significant Accounting Policies | |
Basis of Accounting | |
The ART has assessed the requirements to report under the liquidation basis of accounting. The Financial Accounting Standards Board stipulated in its 2013-07 update, that an entity with a limited life, as stipulated in its formation documents, should not apply the liquidation basis of accounting. Consequently, the ART will continue to report under United States generally accepted accounting principles for going-concern entities. The ART will assess the need to adopt any required changes to its current basis of accounting on an ongoing basis. | |
Use of Estimates | |
The financial statements were prepared in conformity with accounting principles generally accepted in the United States and require the ART to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results are likely to differ from those estimates and those differences may be significant. | |
Cash and Cash Equivalents, and Temporary Investments | |
The ART considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Substantially all cash and cash equivalents are held in the trust department of a financial institution. The amount on deposit does not exceed the federally insured limit. As of December 31, 2014 and 2013 all cash equivalents consist of bank deposits, bank certificates of deposit (“CDs”) or money market funds which are invested in US Government Treasury obligations in accordance with the ART investment policy. | |
Income Taxes | |
The ART is not subject to federal or state income taxes. The ART is not aware of any transactions or events up to and including December 31, 2014 that would subject it to federal or state income taxes. Further, the ART has no unrecognized income tax benefits as of December 31, 2014 and 2013 nor are there any amounts required to be included in the financial statements for interest or penalties on unrecognized income tax benefits. | |
The Plan and Declaration provide that, for federal income tax purposes, the ART was deemed to be formed in two steps. The contribution by Adelphia of $25.0 million for the purpose of pursuing the Causes of Action, the Causes of Action and any and all other property transferred to the ART (together, the “ART Property”) were treated first as a deemed transfer of the ART Property to the holders of claims and equity interests who receive interests in the ART (“Interests”) (in proportion to the fair market values of the Interests they receive). This was followed by a deemed transfer by each such holder of its interest in the ART Property to the ART, in exchange for Interests. | |
The Holders are treated as the grantors of the ART and the Trustees have and will continue to file tax returns for the ART as a “grantor trust” pursuant to Section 1.671-4(a) of the U.S. Treasury Regulations. The ART obtained a private letter ruling from the Internal Revenue Service confirming the ART’s treatment for tax purposes as a pass-through grantor trust. As a condition to receiving that private letter ruling, the ART amended its Declaration to eliminate the Trustees’ obligation under the Declaration of Trust to “use reasonable best efforts and with the approval of the Bankruptcy Court to have the [ART] interests … listed on a national securities exchange.” On June 4, 2008, the United States Bankruptcy Court for the Southern District of New York granted the Trust’s motion to so amend the ART’s Declaration. | |
Items of income, gain, loss, deduction and other tax items have been and will be allocated to the Holders that would be entitled to receive such items if they constituted cash distributions or reductions therefrom. The Holders are responsible for the payment of taxes on a current basis that result from such allocations whether or not cash is distributed. | |
As of December 31, 2014 and 2013 the net tax basis of the ART is approximately $347.1 million and $346.6 million, respectively, higher than the reported amount of net assets in the ART financial statements. | |
Revenue Recognition | |
Revenue from Causes of Action is recognized when collection is reasonably assured and: | |
For settlements that are not submitted to the Bankruptcy Court for approval, when the settlement agreement is fully executed by all parties to the agreement. | |
For settlements that are submitted for Bankruptcy Court approval, when an order entered by the Bankruptcy Court approving the settlement becomes a final order and is not subject to appeal. Settlements collected but subject to appeal are recorded as deferred settlement revenue until the time for appeal expires. | |
For judgments, when a judgment entered by the Bankruptcy Court becomes a final judgment and is not subject to appeal or such appeal when made is determined to be frivolous or have a remote chance of success. | |
The ART is currently in the process of prosecuting numerous Causes of Action as discussed in Note 8. | |
New Accounting Pronouncements | |
There are no new accounting pronouncements that the ART is required to adopt which will likely have a material effect on its financial statements. | |
Distributions
Distributions | 12 Months Ended |
Dec. 31, 2014 | |
Interest Holder Distribution | |
Interest Holder Distribution | |
3.Distributions | |
Pursuant to the Plan and the Declaration, distributions to Holders (“Distribution(s)”) are net of any costs and expenses incurred by the ART in connection with administering, litigating or otherwise resolving the various Causes of Action. Such amounts withheld from Distribution may also include those amounts used to pay for expected fees and expenses of the Trustees, premiums for directors and officers insurance, and other insurance and fees and expenses of attorneys and consultants. Distributions will be made only from assets of the ART and only to the extent that the ART has sufficient assets (over amounts retained for contingent liabilities and future costs and expenses) to make such payments in accordance with the Plan and the Declaration. No Distribution is required to be made to any Holder unless such Holder is to receive in such Distribution at least $25.00 (per Holder class, name and address), or unless such Distribution is the final Distribution to such Holder pursuant to the Plan and the Declaration. | |
Distributions are made at the sole discretion of the Trustees in accordance with the provisions of the Plan and the Declaration and are payable to Holders of Interests in the Trust in accordance with the waterfall priority established in the Plan. The Trustees made two Distributions in 2012, one on March 1, 2012 for $30 million with a record date of February 23, 2012 and one on December 18, 2012 for $30 million with a record date of December 10, 2012. The ART made no Distributions in 2013 or 2014. During 2014 and 2013 previously issued ART Distributions reverted to the ART in the amount of $1,144 and $99,979, respectively. These funds were returned to the ART in accordance with Plan provisions regarding unclaimed distributions and have been recorded as a deferred holder distributions liability. Such funds have reverted to the ART for the benefit of Interest Holders in the class of the forfeiting Holders and will be distributed to such Interest Holders at a time determined by the Trustees. | |
Notes_Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2014 | |
Notes Receivable | |
Notes Receivable | |
4.Notes Receivable | |
On August 3, 2007 the ART settled a Cause of Action and received an unsecured note bearing simple (non-compounding) interest, at a rate of 8%, in the principal amount of $4,875,250. The Court approved the settlement of that Cause of Action on September 6, 2007. The note is recourse only to the future proceeds of approximately $27.4 million from life insurance policies on the lives of Mr. Leonard Tow and his wife. A portion of the proceeds from a first to die rider on one policy shall be paid on the first to die of Mr. Tow and his wife. In July 2014, the first to die rider was triggered by the death of Claire Tow and a payment of $2.100 million was made to the ART in October 2014 by Adelphia as required by the terms of the note and the settlement. The $2.100 million payment was allocated ratably between principal of $1.340 million and accrued interest of $0.760 million through the payment date. | |
The remaining proceeds shall not be paid until the death of of Mr. Leonard Tow. Payment of the principal and interest is not expected before December 31, 2015. As of December 31, 2014 and 2013 the balance under the note was $5,604,966 and $7,338,876, respectively, comprised of the principal amount of the note of $3,535,309 and $4,875,250, respectively, and accrued interest of $2,069,657 and $2,463,626, respectively. Principal and accrued interest are considered fully collectable. | |
Other_Related_Party_Transactio
Other Related Party Transactions and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions | |
Related Party Transactions | |
5.Other Related Party Transactions and Prepaid Expenses | |
In 2014 and 2013 the ART prepaid director and officer insurance premiums in the amount of $172,036 and $229,993 respectively. In 2011 the ART prepaid director and officer insurance premiums for the ART’s post-liquidation period in the amount of $406,000 which remains unused. In each of 2014 and 2013 Adelphia was directed to pre-pay $30,000 in bank fees. The remaining prepaid portion of these costs as of December 31, 2014 and 2013 was $581,324 and $639,198, respectively. | |
The Trust Administrator and Adelphia continue to provide administrative support to the ART including maintaining electronic data and paper documents used in prosecuting the Causes of Action, support for Holder Distributions when they might occur (including maintenance of data related to the implementation of Plan provisions) and financial reporting. These services have and will continue to be provided at no cost to the ART under the terms of various agreements between the ART, the Trust Administrator and Adelphia. The ART financial statements do not reflect any amounts for these services. | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | |
6.Fair Value of Financial Instruments | |
As of December 31, 2014 and 2013 the fair value of cash and cash equivalents, prepaid assets and accrued expenses approximate their carrying values. | |
The fair value of the note receivable and accrued interest has been determined using unobservable inputs (i.e. Level 3, as defined in Accounting Standards Codification 820-10) and approximates $5.060 million as of December 31, 2014 and $5.801 million as of December 31, 2013. The fair value was derived by discounting to December 31, 2014 and 2013 the projected maturity value of the note including accrued interest. The discount rate was derived using the published yield on the 3 and 5 year benchmark U.S. Treasury bond plus the average reported spread on certain public unsecured bonds of the life insurance companies that provided the Tow life insurance policies. The projected maturity values, including interest, were calculated using life expectancy tables. The discount rate is based on the yield on the notes issued by the life insurance companies underwriting the life insurance policies and various other risk factors associated with the note. | |
The carrying values were approximately $5.605 million as of December 31, 2014 and approximately $7.339 million as of December 31, 2013. The note bears 8% simple interest and is recourse only to the proceeds of various life insurance policies on Mr. Leonard Tow. | |
Trustee_Compensation
Trustee Compensation | 12 Months Ended |
Dec. 31, 2014 | |
Trustee Compensation | |
Trustee Compensation | |
7.Trustee Compensation | |
After December 31, 2007 the Official Committee of Unsecured Creditors of Adelphia Communications Corporation and all of its Affiliated Debtors-In-Possession (the “Creditors Committee”) agreed to Trustee compensation of $43,750 per quarter, or $175,000 annually. | |
Under an agreement with the Creditors Committee, in 2014 and 2013 each of the five Trustees received annual base compensation of $175,000 paid at the beginning of each quarter in the amount of $43,750. The Trustees may award reasonable additional service compensation (“Additional Service Compensation”) to any Trustee for additional service to the ART. The aggregate amount of Additional Service Compensation distributed to all Trustees as a group may not exceed $350,000 per year. The amounts paid and expensed as Additional Service Compensation in 2014 totaled $350,000. This was authorized and paid in 2014 for Trustee services rendered in 2013. As of the date of this report $350,000 of Additional Service Compensation was awarded for 2014 service. The decision and obligation to award Additional Service Compensation and the related payment were both finalized after December 31, 2014 and thus will be expensed in 2015. | |
Incentive Compensation (“Incentive Compensation”) may be awarded in conjunction with the termination of the ART, based on the amount of aggregate Distributions to the Holders over the existence of the ART. The Incentive Compensation for each Trustee shall equal (A + B - (C)) divided by 5, where: | |
(A) equals 60 basis points of the amount distributable to the Holders in an aggregate amount of Distributions to Holders of up to $1,500,000,000; | |
(B) equals 110 basis points of the amount distributable to Holders in an aggregate amount of Distributions to Holders of $1,500,000,000 or more; and | |
(C) equals the amounts paid or attributable to the Trustees as Base Compensation and Additional Service Compensation in total (for the avoidance of doubt, the sum of the Base Compensation and Additional Service Compensation during the existence of the ART shall be applied as a credit and deducted from any sums payable to any Trustee under (A) and (B) above). | |
Incentive Compensation for a Trustee shall never be less than zero. That is, the Base Compensation and the Additional Service Compensation shall be retained by the Trustees regardless of whether any Incentive Compensation is due. The ART currently has no Incentive Compensation liability based on ART Distributions through December 31, 2014. | |
Causes_of_Action
Causes of Action | 12 Months Ended |
Dec. 31, 2014 | |
Pending Causes of Action | |
Pending Causes of Action | |
8.Causes of Action | |
FPL Litigation | |
On June 24, 2004, the Creditors’ Committee filed a fraudulent conveyance complaint against FPL Group, Inc. and West Boca Security, Inc. (collectively, “FPL”) in the Bankruptcy Court for the Southern District of New York relating to pre-petition transactions. The FPL action seeks to recover an alleged fraudulent transfer arising out of Adelphia’s repurchase of certain of its stock from FPL in January 1999 for $149.5 million. Pursuant to the Plan, the claims asserted in the FPL Litigation were transferred to the ART. | |
On July 13, 2011, the Bankruptcy Court denied FPL’s motion for leave to amend its answer to add a new defense. FPL filed an appeal of the Bankruptcy Court’s July 13, 2011 decision, which was denied September 18, 2012. On September 28, 2011, FPL moved to withdraw the reference to Bankruptcy Court. The District Court denied FPL’s motion to withdraw the reference on January 30, 2012. Trial began April 30, 2012 and testimony concluded on May 3, 2012. The parties submitted post-trial briefs on June 22, 2012. The Bankruptcy Court heard closing arguments on July 25, 2012. On May 6, 2014, the Bankruptcy Court issued proposed Findings of Fact and Conclusions of Law (the “Proposed Findings”), which recommend that the District Court enter judgment in favor of FPL. The Bankruptcy Court’s proposed Findings of Fact and Conclusions of Law will be reviewed by the District Court under a de novo standard of review before a judgment is entered. The Trust filed an Objection to the Court’s Proposed Findings on June 10, 2014, and that Objection has been fully briefed by the parties. The matter is now pending before District Court for the Southern District of New York. | |
At this time, the ART cannot predict the outcome of the FPL Litigation or estimate the possible financial effect of this proceeding on the ART’s financial statements. | |
Avoidance Actions | |
On July 31, 2003, Adelphia and its debtor affiliates filed with the Bankruptcy Court their Statements of Financial Affairs, which included a schedule of payments to insider entities made within one year prior to Adelphia’s filing for bankruptcy and payments to non-insider entities made within ninety days prior to Adelphia’s filing for bankruptcy. Subsequently, Adelphia engaged in extensive analysis of all such payments to determine if they could be avoided pursuant to certain provisions of the Code. | |
On April 20, 2004, Adelphia filed a motion seeking to abandon most of the potential actions to avoid the pre-petition payments because, among other reasons, (i) Adelphia believed that pursuing certain of such actions against parties with whom Adelphia was continuing to do business could have a significant adverse impact on important, ongoing business relationships, and (ii) the costs associated with pursuing such actions far outweighed any potential benefit to the Adelphia debtors’ estates that might otherwise result from bringing such actions. In response to certain objections to Adelphia’s motion, Adelphia amended its initial motion. | |
On May 27, 2004, the Bankruptcy Court entered an order tolling all claims to avoid inter-debtor payments and authorizing the abandonment of potential actions to avoid (i) transfers to taxing authorities; (ii) transfers to human resource providers engaged in business with Adelphia; (iii) transfers determined to have been made in the ordinary course of business; and (iv) certain transfers deemed de minimis. As to the remainder of the transfers made by Adelphia during the relevant one-year and ninety-day periods prior to the bankruptcy filing, Adelphia either (i) entered into tolling agreements with the transferee extending Adelphia’s time to initiate an action, or (ii) filed a complaint and initiated an adversary proceeding against the transferee. | |
As of June 25, 2004, Adelphia secured approximately 250 tolling agreements with various transferees, including members of the Rigas family, the Rigas family entities, former executives James Brown and Michael Mulcahey, and former directors Erland Kailbourne, Dennis Coyle, Leslie Gelber, and Peter Metros, among others. Certain of these tolling agreements have been amended from time to time. In addition, Adelphia filed approximately 150 complaints in the Bankruptcy Court commencing actions to avoid certain pre-petition transfers and payments. Those complaints have since been dismissed or resolved after further investigation. | |
At this time, the ART cannot predict the outcome of the remaining claims or estimate the possible financial effect of these proceedings on the ART’s financial statements. | |
Previously Resolved Matters | |
Goldman Sachs Litigation | |
On July 6, 2003, the Creditors Committee filed a complaint in the Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) against Adelphia’s pre-petition commercial banks and lenders, Adelphia’s former investment bankers and financial advisors, and assignees of Adelphia’s pre-petition bank debt (the “Bank Litigation”). On February 9, 2006, the United States District Court for the Southern District of New York (the “District Court”) granted a motion filed by certain defendants to withdraw the reference to the Bankruptcy Court. Pursuant to the Plan, the claims asserted in the Goldman Sachs Litigation were transferred to the ART. | |
The complaint included a claim for intentional fraudulent transfer against Goldman Sachs, Inc. arising from Adelphia’s pre-petition repayment of the Rigases’ personal margin loans in an amount of approximately $63.0 million. On May 6, 2009, the Court denied Goldman Sachs’ motion to dismiss. Goldman moved for summary judgment on March 2, 2010. Following argument in August 2010, Goldman supplemented its motion on November 12, 2010. On April 7, 2011, the District Court granted Goldman’s summary judgment motion and judgment was entered on April 13, 2011. On May 6, 2011, the ART timely filed its notice of appeal to the Court of Appeals for the Second Circuit and subsequently filed an appeal. On April 25, 2012, the Second Circuit Court of Appeals heard oral argument on the appeal and took the case under advisement. On April 4, 2014, the Second Circuit affirmed the District Court’s summary judgment in favor of Goldman Sachs. The ART determined not to seek a rehearing before the Second Circuit or file a petition for writ of certiorari with the United States Supreme Court. | |
Prestige Litigation | |
On June 24, 2004, the Creditors’ Committee filed an adversary action against Prestige Communications of NC, Inc., Jonathan J. Oscher, Lorraine Oscher McClain, Robert F. Buckfelder, Buckfelder Investment Trust, and Anverse, Inc. in the Bankruptcy Court for the Southern District of New York. In a decision dated January 8, 2008, the District Court withdrew the reference to the Bankruptcy Court in the Prestige action and transferred the case to the District Court. | |
The Prestige action seeks to recover fraudulent transfers in connection with Adelphia’s purchase of the assets of Prestige Communications of N.C., Inc., an acquisition that closed on July 5, 2000, as well as a claim that the owners of the Prestige Cable Systems aided and abetted breaches of fiduciary duty on the part of the Rigas family in connection with the transaction. Pursuant to the Plan, which became effective on February 13, 2007, the claims asserted in the Prestige Litigation were transferred to the ART. | |
On October 27, 2009, Defendants moved for summary judgment on the ART’s claims. On June 27, 2011, the District Court granted Defendants’ summary judgment motion and judgment was entered on June 28, 2011. The ART timely filed its notice of appeal to the Court of Appeals for the Second Circuit. Following the Second Circuit’s decision in the Goldman Sachs Litigation, the parties reached a settlement that involved no financial payment to either party. The appeal was dismissed on October 1, 2014. | |
Buchanan Ingersoll | |
Buchanan Ingersoll & Rooney PC (“Buchanan”) served as Adelphia’s primary outside legal counsel prior to June 2002, when Adelphia filed for bankruptcy protection. On June 27, 2012, the ART announced that it had reached a settlement with Buchanan, subject to the approval of the United States Bankruptcy Court. On July 18, 2012, the Bankruptcy Court entered an order approving the settlement. No objections or appeals were filed in the period allowed for appeals, and on August 1, 2012 the settlement became final. Under the terms of the settlement, Buchanan made an initial payment of $20.0 million to the ART, and the ART agreed to participate with other parties that had asserted claims against Buchanan in a binding Alternate Dispute Resolution proceeding (the “ADR Proceeding”). The ART was awarded an additional $14 million in the ADR Proceeding on November 20, 2012. | |
Bank Litigation | |
The complaint in the Bank Litigation, as subsequently amended, asserted claims seeking (a) recovery as fraudulent transfers of the principal and interest paid by Adelphia to defendants, (b) avoidance as fraudulent obligations of Adelphia’s obligations, if any, to repay the defendants, (c) recovery of damages for fraud and breaches of fiduciary duties to Adelphia and for aiding and abetting fraud and breaches of fiduciary duties by members of the Rigas family relating to Adelphia’s credit facilities, (d) equitable disallowance, subordination or recharacterization of each of the defendants’ claims in Adelphia’s bankruptcy cases, (e) avoidance and recovery of preferential transfers made to certain defendants shortly prior to Adelphia’s bankruptcy filing, and (f) recovery of damages for violations of the Bank Holding Company Act (“BHCA”). Claims against several Defendants were dismissed in a June 18, 2008 ruling by the District Court that was affirmed by the Second Circuit on May 26, 2010. | |
On November 18, 2010, the District Court approved a settlement pursuant to which the ART’s claims against the Agent Bank and Investment Bank Defendants were released in exchange for a payment of $175 million. On February 14, 2011, the District Court approved a settlement agreement between the ART and the Non-Agent Lenders and Additional Non-Agent Lenders. | |
Motorola Litigation | |
On June 22, 2006, Adelphia filed an adversary complaint against Motorola, Inc. and certain of its subsidiaries (“Motorola”), as well as transferees of claims filed by Motorola in the Adelphia bankruptcy cases in the Bankruptcy Court for the Southern District of New York. The complaint sought recovery for (a) Motorola’s aiding and abetting breaches of fiduciary duty by members of the Rigas family in manipulating Adelphia’s financial statements and performance results for the fiscal years 2000 and 2001; (b) avoidance and recovery of preferential and fraudulent transfers made to Motorola of more than $60 million; (c) avoidance of purported (but unperfected) liens asserted by Motorola; and (d) equitable disallowance or subordination of Motorola’s claims in the Adelphia bankruptcy cases (the total face amount of which is approximately $66.6 million). The ART was added as a co-plaintiff with Adelphia after February 13, 2007. | |
On October 26-30, 2009, the Bankruptcy Court conducted a trial on the sole issue of Adelphia’s claim to equitably subordinate or disallow the Motorola claim against the estate. Before the Bankruptcy Court issued its decision, a settlement was reached among ART, Adelphia, and Motorola. The Bankruptcy Court entered an order approving the settlement on December 14, 2009. Pursuant to the settlement, Motorola made a payment of $40 million to the ART on December 29, 2009. In connection with the settlement with Motorola, the ART issued a total of 57,274,499 ACC-2 Interests to Bear, Stearns & Co. Inc., DK Acquisition Partners L.P. and Varde Investment Partners, L.P. on December 30, 2009. | |
Deloitte & Touche Litigation | |
On November 6, 2002, Adelphia filed a lawsuit against Deloitte & Touche LLP (“Deloitte”), Adelphia’s former independent auditor, for accounting malpractice in Pennsylvania state court. Adelphia alleged that Deloitte (i) failed to conduct an audit in accordance with generally accepted auditing standards and (ii) provided an opinion that Adelphia’s financial statements conformed with generally accepted accounting principles when Deloitte allegedly knew or should have known that those financial statements did not so conform. | |
On August 3, 2007, the ART announced that it had reached a settlement with Deloitte to resolve the claims between Adelphia, the ART, and Deloitte in exchange for a payment of $167.5 million, subject to the approval of the Bankruptcy Court. The Bankruptcy Court entered an order approving the settlement on August 16, 2007. | |
Rosensweig and Tow Litigation | |
On August 3, 2007, the ART announced the settlement of various pending adversary actions and bankruptcy claims pending in the Bankruptcy Court for the Southern District of New York involving Leonard Tow, his wife, and David Rosensweig, the Trustee of two trusts created in connection with Tow’s exercise of his right to terminate his employment as the Chief Executive Officer of Century Communications Corporation when Adelphia acquired Century in 1999. The Bankruptcy Court entered an order approving the settlement on September 6, 2007. The settlement provided for a cash payment to the ART of approximately $15.8 million and an interest-bearing note in the principal amount of approximately $4.9 million issued by Adelphia with simple, non-compounding, interest thereon at the rate of 8%. That note is recourse only to Adelphia’s proceeds from life insurance policies on the lives of Mr. Tow and his wife, the total proceeds of which policies shall not be paid until the death of the last to die of Mr. Tow and his wife. A partial payment of the note in the amount of $2.1 million was paid in October 2014 in accordance with the terms of the note. | |
Litigation Indemnification Fund Litigation | |
Pursuant to the Third Modified Fourth Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code for Century-TCI Debtors and Parnassos Debtors (the “JV Plan”), which became effective on July 31, 2006; the Plan, which became effective on February 13, 2007; and certain other orders entered by the Bankruptcy Court, litigation indemnification funds (each, a “LIF”) were created and held by Adelphia to provide certain defendants in the Bank Litigation (see above) provisional and conditional reimbursement of legal fees and expenses expected to be incurred in connection with defending litigation involving certain credit facilities. | |
The LIF created under the JV Plan (the “JV LIF”), established in the initial amount of $10 million, was created to fund certain allowable claims for indemnification arising under the Parnassos and Century-TCI prepetition credit facilities. Subject to certain conditions, the JV LIF is “evergreen” ; in other words, the JV Plan provides the JV LIF will be replenished by the ART under certain conditions, such as “upon the receipt . . . of net proceeds of any Designated Litigation” after first deducting any required distribution to the government. | |
The LIFs created under the Plan (the “Plan LIFs”) are fixed in amounts and not subject to replenishment. Because the JV LIF is evergreen, whereas the Plan LIFs are capped, the allocation of defense costs among the categories of LIFs is a matter of economic significance. | |
Certain entities (the “JV Claimants”) submitted formal claims that through September 30, 2011 aggregated approximately $26.9 million in excess of the $10.0 million initially deposited in the JV Litigation Indemnification Fund by Adelphia. Thus, claims against the JV LIF totaled approximately $36.9 million and certain of the JV Claimants indicated an intention to submit additional claims in the future. Adelphia and the ART asserted that the JV LIF claims were improper. | |
On November 13, 2008, certain of the JV claimants filed, or subsequently joined in, the Motion of the Bank of Nova Scotia, Citibank N.A. and The Ad Hoc Committee of Non-Agent Secured Lenders in the Parnassos and Century-TCI Facilities for Payment of Bank Lender Post Effective Date Fee Claims and to Compel Compliance of the Plan Administrator (defined in the JV Plan as Adelphia) and the Art with the Third Modified Fourth Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code and the Century TCI Stipulation (the “LIF Motion”). Adelphia and the ART moved to disallow Bank Lender Post-Effective Date Fee Claims against the claimants. | |
The JV LIF claims involving Societe Generale, S.A. were resolved by settlement in 2010. The claims of the remaining JV LIF Claimants were resolved by settlement in 2011. The ART contributed $1.2 million to the JV evergreen LIF in connection with the final settlement of the JV LIF claims. Those settlements fully resolved all claims asserted against the JV LIF. | |
Sabres Litigation | |
The Sabres action involves claims for fraudulent conveyance, aiding and abetting breach of fiduciary duty, and equitable subordination or disallowance against Key Bank, N.A. (“Key Bank”), Fleet National Bank (“Fleet”), and HSBC Bank USA, N.A. (“HSBC”) (collectively, the “Sabres Banks”) arising from (i) Adelphia’s purchase of and payments on certain loans made by the Sabres Banks to a Rigas Family partnership that owned the Buffalo Sabres hockey team and (ii) John Rigas’ purchase of the team using Adelphia financing. HSBC has asserted counterclaims against Adelphia for “post-petition tort,” contribution and indemnification. | |
The District Court for the Western District of New York granted a permanent injunction against the ART’s prosecution of the fraudulent conveyance claims against the Sabres Banks and the Second Circuit affirmed that decision. The ART’s claims against Fleet were resolved as part of the settlement between the ART and Fleet and other defendants in the Bank Litigation. | |
The remaining Sabres Banks cross-moved to dismiss the ART’s claims for aiding and abetting breach of fiduciary duty and equitable subordination or disallowance. The ART moved to dismiss HSBC’s counterclaims. | |
On May 18, 2012, the Court dismissed the Trust’s claims for aiding and abetting breach of fiduciary duty and equitable subordination or disallowance and HSBC’s counterclaims. The Court entered judgment and dismissed the case on May 22, 2012. The ART determined to not appeal the decision. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events | |
Subsequent Events | |
9.Subsequent Events | |
Subsequent to December 31, 2014 and through March 2, 2015 other than as discussed herein, there have been no events that would be material to the financial statements of the ART including Cause of Action settlements or judgments or Holder Distributions or decisions concerning future Holder Distributions. | |
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Unaudited Quarterly Financial Data | |||||||||||||||||
Unaudited Quarterly Financial Data | |||||||||||||||||
10Unaudited Quarterly Financial Data | |||||||||||||||||
2014 | |||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Quarter ended | For year ended | |||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | December 31, 2014 | |||||||||||||
Revenues | |||||||||||||||||
Interest income | $ | 105,224 | $ | 106,056 | $ | 106,899 | $ | 82,599 | $ | 400,778 | |||||||
Total revenues | 105,224 | 106,056 | 106,899 | 82,599 | 400,778 | ||||||||||||
Operating expenses | |||||||||||||||||
General and administrative expenses | 686,604 | 311,079 | 311,033 | 317,099 | 1,625,815 | ||||||||||||
Professional expenses | 103,444 | 55,517 | 80,498 | 98,374 | 337,833 | ||||||||||||
Total operating expenses | 790,048 | 366,596 | 391,531 | 415,473 | 1,963,648 | ||||||||||||
Net loss | $ | (684,824 | ) | $ | (260,540 | ) | $ | (284,632 | ) | $ | (332,874 | ) | $ | (1,562,870 | ) | ||
2013 | |||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Quarter ended | For year ended | |||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | December 31, 2013 | |||||||||||||
Revenues | |||||||||||||||||
Interest income | $ | 103,104 | $ | 106,562 | $ | 105,693 | $ | 105,473 | $ | 420,832 | |||||||
Total revenues | 103,104 | 106,562 | 105,693 | 105,473 | 420,832 | ||||||||||||
Operating expenses | |||||||||||||||||
General and administrative expenses | 696,570 | 352,983 | 331,497 | 328,833 | 1,709,883 | ||||||||||||
Professional expenses | 83,807 | 58,675 | 76,263 | 143,147 | 361,892 | ||||||||||||
Total operating expenses | 780,377 | 411,658 | 407,760 | 471,980 | 2,071,775 | ||||||||||||
Net loss | $ | (677,273 | ) | $ | (305,096 | ) | $ | (302,067 | ) | $ | (366,507 | ) | $ | (1,650,943 | ) | ||
Note: Due the nature of the ART’s operations both revenue and operating expenses fluctuate significantly between and among reporting periods based on activities and results related to the Causes of Action. | |||||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Accounting |
The ART has assessed the requirements to report under the liquidation basis of accounting. The Financial Accounting Standards Board stipulated in its 2013-07 update, that an entity with a limited life, as stipulated in its formation documents, should not apply the liquidation basis of accounting. Consequently, the ART will continue to report under United States generally accepted accounting principles for going-concern entities. The ART will assess the need to adopt any required changes to its current basis of accounting on an ongoing basis. | |
Use of Estimates | |
Use of Estimates | |
The financial statements were prepared in conformity with accounting principles generally accepted in the United States and require the ART to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results are likely to differ from those estimates and those differences may be significant. | |
Cash and Cash Equivalents, and Temporary Investments | |
Cash and Cash Equivalents, and Temporary Investments | |
The ART considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Substantially all cash and cash equivalents are held in the trust department of a financial institution. The amount on deposit does not exceed the federally insured limit. As of December 31, 2014 and 2013 all cash equivalents consist of bank deposits, bank certificates of deposit (“CDs”) or money market funds which are invested in US Government Treasury obligations in accordance with the ART investment policy. | |
Income Taxes | |
Income Taxes | |
The ART is not subject to federal or state income taxes. The ART is not aware of any transactions or events up to and including December 31, 2014 that would subject it to federal or state income taxes. Further, the ART has no unrecognized income tax benefits as of December 31, 2014 and 2013 nor are there any amounts required to be included in the financial statements for interest or penalties on unrecognized income tax benefits. | |
The Plan and Declaration provide that, for federal income tax purposes, the ART was deemed to be formed in two steps. The contribution by Adelphia of $25.0 million for the purpose of pursuing the Causes of Action, the Causes of Action and any and all other property transferred to the ART (together, the “ART Property”) were treated first as a deemed transfer of the ART Property to the holders of claims and equity interests who receive interests in the ART (“Interests”) (in proportion to the fair market values of the Interests they receive). This was followed by a deemed transfer by each such holder of its interest in the ART Property to the ART, in exchange for Interests. | |
The Holders are treated as the grantors of the ART and the Trustees have and will continue to file tax returns for the ART as a “grantor trust” pursuant to Section 1.671-4(a) of the U.S. Treasury Regulations. The ART obtained a private letter ruling from the Internal Revenue Service confirming the ART’s treatment for tax purposes as a pass-through grantor trust. As a condition to receiving that private letter ruling, the ART amended its Declaration to eliminate the Trustees’ obligation under the Declaration of Trust to “use reasonable best efforts and with the approval of the Bankruptcy Court to have the [ART] interests … listed on a national securities exchange.” On June 4, 2008, the United States Bankruptcy Court for the Southern District of New York granted the Trust’s motion to so amend the ART’s Declaration. | |
Items of income, gain, loss, deduction and other tax items have been and will be allocated to the Holders that would be entitled to receive such items if they constituted cash distributions or reductions therefrom. The Holders are responsible for the payment of taxes on a current basis that result from such allocations whether or not cash is distributed. | |
As of December 31, 2014 and 2013 the net tax basis of the ART is approximately $347.1 million and $346.6 million, respectively, higher than the reported amount of net assets in the ART financial statements. | |
Revenue Recognition | |
Revenue Recognition | |
Revenue from Causes of Action is recognized when collection is reasonably assured and: | |
For settlements that are not submitted to the Bankruptcy Court for approval, when the settlement agreement is fully executed by all parties to the agreement. | |
For settlements that are submitted for Bankruptcy Court approval, when an order entered by the Bankruptcy Court approving the settlement becomes a final order and is not subject to appeal. Settlements collected but subject to appeal are recorded as deferred settlement revenue until the time for appeal expires. | |
For judgments, when a judgment entered by the Bankruptcy Court becomes a final judgment and is not subject to appeal or such appeal when made is determined to be frivolous or have a remote chance of success. | |
The ART is currently in the process of prosecuting numerous Causes of Action as discussed in Note 8. | |
New Accounting Pronouncements | |
New Accounting Pronouncements | |
There are no new accounting pronouncements that the ART is required to adopt which will likely have a material effect on its financial statements. | |
Unaudited_Quarterly_Financial_1
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Unaudited Quarterly Financial Data | |||||||||||||||||
Schedule of unaudited quarterly financial data | |||||||||||||||||
2014 | |||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Quarter ended | For year ended | |||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | December 31, 2014 | |||||||||||||
Revenues | |||||||||||||||||
Interest income | $ | 105,224 | $ | 106,056 | $ | 106,899 | $ | 82,599 | $ | 400,778 | |||||||
Total revenues | 105,224 | 106,056 | 106,899 | 82,599 | 400,778 | ||||||||||||
Operating expenses | |||||||||||||||||
General and administrative expenses | 686,604 | 311,079 | 311,033 | 317,099 | 1,625,815 | ||||||||||||
Professional expenses | 103,444 | 55,517 | 80,498 | 98,374 | 337,833 | ||||||||||||
Total operating expenses | 790,048 | 366,596 | 391,531 | 415,473 | 1,963,648 | ||||||||||||
Net loss | $ | (684,824 | ) | $ | (260,540 | ) | $ | (284,632 | ) | $ | (332,874 | ) | $ | (1,562,870 | ) | ||
2013 | |||||||||||||||||
Quarter ended | Quarter ended | Quarter ended | Quarter ended | For year ended | |||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | December 31, 2013 | |||||||||||||
Revenues | |||||||||||||||||
Interest income | $ | 103,104 | $ | 106,562 | $ | 105,693 | $ | 105,473 | $ | 420,832 | |||||||
Total revenues | 103,104 | 106,562 | 105,693 | 105,473 | 420,832 | ||||||||||||
Operating expenses | |||||||||||||||||
General and administrative expenses | 696,570 | 352,983 | 331,497 | 328,833 | 1,709,883 | ||||||||||||
Professional expenses | 83,807 | 58,675 | 76,263 | 143,147 | 361,892 | ||||||||||||
Total operating expenses | 780,377 | 411,658 | 407,760 | 471,980 | 2,071,775 | ||||||||||||
Net loss | $ | (677,273 | ) | $ | (305,096 | ) | $ | (302,067 | ) | $ | (366,507 | ) | $ | (1,650,943 | ) | ||
Nature_and_Purpose_Details
Nature and Purpose (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||||
Dec. 18, 2012 | Mar. 01, 2012 | Dec. 21, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
trustee | item | item | item | ||||
item | |||||||
Related party transactions | |||||||
Number of Trustees | 5 | ||||||
Number of employees | 0 | ||||||
Number of distributions made | 0 | 0 | 2 | 0 | |||
Amount distributed in cash to the holders of interests in the trust | $30,000,000 | $30,000,000 | $215,000,000 | ||||
Number of currently planned distributions | 0 | ||||||
Adelphia | |||||||
Related party transactions | |||||||
Nominal amount of Causes of Action transferred from Adelphia for resolution | 1 | ||||||
Contribution from Adelphia for the purpose of pursuing the Causes of Action | 25,000,000 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes | ||
Unrecognized income tax benefits | $0 | |
Other Related Party Transactions and Prepaid Expenses | ||
Net tax basis higher than the reported amount of net assets | 347,100,000 | 346,600,000 |
Adelphia | ||
Other Related Party Transactions and Prepaid Expenses | ||
Contribution from Adelphia for the purpose of pursuing the Causes of Action | $25,000,000 |
Distributions_Details
Distributions (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||||
Dec. 18, 2012 | Mar. 01, 2012 | Dec. 21, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | item | item | item | ||||
Interest Holder Distribution | |||||||
Distribution to be received by each holder, minimum | $25 | ||||||
Amount distributed in cash to the holders of interests in the trust | 30,000,000 | 30,000,000 | 215,000,000 | ||||
Amount of distributions reverted to the trust | $1,144 | $99,979 | |||||
Number of distributions made | 0 | 0 | 2 | 0 |
Notes_Receivable_Details
Notes Receivable (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 06, 2007 | Aug. 03, 2007 | |
Notes Receivable | |||||
Principal amount | 4,875,250 | ||||
Principal amount and accrued interest of the note | 5,604,966 | 7,338,876 | |||
Payment (received) on note and accrued interest receivable | -2,100,000 | -1,733,910 | 389,999 | ||
Mr. and Mrs. Leonard Tow | |||||
Notes Receivable | |||||
Recourse to Proceeds of Various Life Insurance Policies | 28,000,000 | 27,400,000 | |||
Death of Claire Tow | |||||
Notes Receivable | |||||
Principal amount | 1,340,000 | ||||
Accrued interest | 760,000 | ||||
Payment (received) on note and accrued interest receivable | -2,100,000 | ||||
Note receivable and accrued interest | |||||
Notes Receivable | |||||
Simple Interest Rate | 8.00% | ||||
Principal amount | 3,535,309 | 4,875,250 | |||
Principal amount and accrued interest of the note | 5,604,966 | 7,338,876 | |||
Accrued interest | $2,069,657 | $2,463,626 |
Other_Related_Party_Transactio1
Other Related Party Transactions and Prepaid Expenses (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2014 | |
Other Related Party Transactions and Prepaid Expenses | ||||
Prepaid Expense | $581,324 | $639,198 | $581,324 | |
Adelphia | ||||
Other Related Party Transactions and Prepaid Expenses | ||||
Prepaid director and officer insurance premiums by related party | 172,036 | 229,993 | 406,000 | |
Pre-payment of bank fees by related party | $30,000 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Sep. 06, 2007 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value of Financial Instruments | |||
Carrying value of the note receivable and accrued interest | $5,604,966 | $7,338,876 | |
Mr. and Mrs. Leonard Tow | |||
Fair Value of Financial Instruments | |||
Proceeds of various life insurance policies | 27,400,000 | 28,000,000 | |
Note receivable and accrued interest | |||
Fair Value of Financial Instruments | |||
Simple interest rate (as a percent) | 8.00% | ||
Note receivable and accrued interest | Level 3 | |||
Fair Value of Financial Instruments | |||
Fair value of the note receivable and accrued interest | $5,060,000 | $5,801,000 |
Trustee_Compensation_Details
Trustee Compensation (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
item | |
trustee | |
Trustee Compensation | |
Quarterly trustee compensation | $43,750 |
Annual trustee compensation | 175,000 |
Number of Trustees | 5 |
Maximum aggregate amount of additional service compensation | 350,000 |
Amounts paid and expensed as Additional Service Compensation | 350,000 |
Additional service compensation payable | 350,000 |
Denominator used in calculation of incentive compensation | 5 |
Basis points of the aggregate amount of distributions to Holders up to specified amount (as a percent) | 60.00% |
Basis points of the aggregate amount of distributions to Holders equal to or over a specified amount (as a percent) | 110.00% |
Aggregate amount of distributions to Holders | 1,500,000,000 |
Minimum incentive compensation | $0 |
Causes_of_Action_Details
Causes of Action (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 60 Months Ended | ||||||
Jun. 25, 2004 | Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 18, 2010 | Dec. 29, 2009 | Jun. 22, 2006 | Dec. 14, 2009 | Aug. 03, 2007 | Dec. 31, 2011 | Dec. 31, 2011 | Feb. 13, 2007 | |
complaint | ||||||||||||
agreement | ||||||||||||
Causes of Action | ||||||||||||
Number of tolling agreements with various transferees | 250 | |||||||||||
Number of complaints in the Bankruptcy Court | 150 | |||||||||||
Principal amount of interest-bearing notes issued | $5,604,966 | $7,338,876 | ||||||||||
Payment (received) on note and accrued interest receivable | -2,100,000 | -1,733,910 | 389,999 | |||||||||
Bank Litigation | ||||||||||||
Causes of Action | ||||||||||||
Amount of damages awarded | 175,000,000 | |||||||||||
Motorola Litigation | ||||||||||||
Causes of Action | ||||||||||||
Amount sought or claimed under litigation | 66,600,000 | |||||||||||
Amount of damages awarded | 40,000,000 | |||||||||||
Motorola Litigation | Adelphia | ||||||||||||
Causes of Action | ||||||||||||
Amount of preferential and fraudulent transfers | 60,000,000 | |||||||||||
Motorola Litigation, Bear, Stearns & Co. Inc., DK Acquisition Partners L.P. and Varde Investment Partners, L.P. | ||||||||||||
Causes of Action | ||||||||||||
Number of ACC-2 Interest units issued (in shares) | 57,274,499 | |||||||||||
Deloitte & Touche Litigation | Adelphia | ||||||||||||
Causes of Action | ||||||||||||
Amount of damages awarded | 167,500,000 | |||||||||||
Rosensweig and Tow Litigation | ||||||||||||
Causes of Action | ||||||||||||
Initial payment by defendant | 15,800,000 | |||||||||||
Rosensweig and Tow Litigation | Adelphia | ||||||||||||
Causes of Action | ||||||||||||
Principal amount of interest-bearing notes issued | 4,900,000 | |||||||||||
Non-compounding interest rate (as a percent) | 8.00% | |||||||||||
Personal margin loans | Goldman Sachs Litigation | Pending litigation | ||||||||||||
Causes of Action | ||||||||||||
Amount sought or claimed under litigation | 63,000,000 | |||||||||||
Repurchase of stock | FPL Litigation | Pending litigation | ||||||||||||
Causes of Action | ||||||||||||
Amount sought or claimed under litigation | 149,500,000 | |||||||||||
JV LIF | JV Claimants | ||||||||||||
Causes of Action | ||||||||||||
Amount sought or claimed under litigation | 36,900,000 | |||||||||||
Initial amount held in LIF | 10,000,000 | |||||||||||
Claims in excess of initial amount in JV LIF | 26,900,000 | |||||||||||
Amount contributed in connection with the final settlement | $1,200,000 |
Unaudited_Quarterly_Financial_2
Unaudited Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | ||||||||||
Interest income | $82,599 | $106,899 | $106,056 | $105,224 | $105,473 | $105,693 | $106,562 | $103,104 | $400,778 | $420,832 |
Total revenues | 82,599 | 106,899 | 106,056 | 105,224 | 105,473 | 105,693 | 106,562 | 103,104 | 400,778 | 420,832 |
Operating expenses | ||||||||||
General and administrative expense | 317,099 | 311,033 | 311,079 | 686,604 | 328,833 | 331,497 | 352,983 | 696,570 | 1,625,815 | 1,709,883 |
Professional expenses | 98,374 | 80,498 | 55,517 | 103,444 | 143,147 | 76,263 | 58,675 | 83,807 | 337,833 | 361,892 |
Total operating expenses | 415,473 | 391,531 | 366,596 | 790,048 | 471,980 | 407,760 | 411,658 | 780,377 | 1,963,648 | 2,071,775 |
Net loss | ($332,874) | ($284,632) | ($260,540) | ($684,824) | ($366,507) | ($302,067) | ($305,096) | ($677,273) | ($1,562,870) | ($1,650,943) |