Desert Capital REIT to distribute trust assets under liquidating plan

By Caroline Salls

Pittsburgh, Sept. 9 - Desert Capital REIT, Inc. filed a liquidating plan and related disclosure statement on Sept. 9 with the U.S. Bankruptcy Court for the District of Nevada.

A liquidating trust will be established under the plan, and a liquidating trustee will be appointed to sell or liquate all of the trust's assets.

Proceeds will be used to pay the costs associated with the trust and the wind down of the company and to make distributions to creditors.

Creditors will be treated as follows:

• Holders of administrative claims, priority tax claims, priority non-tax claims and secured tax claims will be paid in full in cash;

• Holders of other secured claims will receive either cash or the collateral securing their claims;

• Holders of senior unsecured claims will receive a share of beneficial interests in the liquidating trust;

• Holders of general unsecured claims will receive a share of liquidating trust interests, provided that any distributions to holders of TruPS claims from the liquidating trust will be distributed to holders of senior unsecured claims until they are paid in full in accordance with subordination provisions; and

• Holders of interests and 510(b) subordinated claims will receive no distribution.

Desert Capital, a Henderson, Nev.-based real estate investment trust, had an involuntary Chapter 11 case filed against it on April 29. The case number is 11-16624.

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