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Case Status Tracker:

1. ** Updated Status (11-20-09) **

   Most-Recent Update: 

   In April 2009, the NWIG Creditors Committee (of which WG is a member) requested a formal committee meeting with the liquidators in charge of the NWIG case pending in the Cayman Islands and a meeting was held in Houston on May 12, 2009.  At the meeting, the NWIG liquidators provided updates as to the pending status of matters in the Cayman proceedings.  At the end of the meetings, the NWIG liquidators agreed to use their best efforts to declare a dividend by September 22, 2009.   

    

   On September 24, 2009, the WG Plan Trustee wrote the NWIG liquidators requesting an update as to the status of the distribution and was advised that the Liquidators have missed the target date agreed to at the May meeting.  The liquidators are also not currently able to provide a new projected date for payment.  The WG Plan Trustee is monitoring this situation and will post updated information as it becomes available. 
   

   
   
   General Case Status: 

   As previously reported on this website, in the latter part of 2008, the Bankruptcy Court in Austin approved the Plan Trustee's final claim objections – which effectively set the final list of approved Vehicle Service Contract (“VSC”) holder claims in the Warranty Gold (“WG”) case.  The link below will provide a list itemizing, for each allowed claimant, the amount of the allowed Refund Claim, and if applicable, the amount of the allowed Repair Claim – along with a Total Allowed Claim for each claimant. 

   Combined Claims Listing With Both Refund and Repair Claims (April 2009)

   As referenced above, the Plan Trustee has completed an extensive claims allowance process in this case resulting in more than 60,000 approved claims totaling approximately $49 million.  The Liquidating Trust Agreement provides for a minimum threshold available to VSC holders of $2 million before a distribution can be made.  At this time, the Plan Trustee does not maintain sufficient funds to meet that threshold and the threshold will not be met until the WG estate receives its distribution from the NWIG liquidators. 

    

   WG is a creditor in the NWIG case and NWIG was WG's insurer, underwriter and administrator.  Before bankruptcy, WG sent its customers' premiums to NWIG for administration of the VSC program, but NWIG failed in June of 2003, which caused the failure of WG.  The final matter to be resolved before the Plan Trustee can make a distribution to allowed claimants in the WG bankruptcy case is the receipt of WG’s share of the funds distributed from NWIG bankruptcy proceeding.   

    

   As such, there is no established date for a distribution to WG creditors; however, the Plan Trustee maintains this website so creditors and other parties in interest can monitor the status of the case.  The status portion of the website is routinely updated as material developments warrant.  This is the most-effective and cost-efficient way to communicate with the more than 60,000 claimants in this case.  

    

   Please be aware that you WILL NOT receive a check for the total claim amount shown on the list of approved claims, but rather only a percentage of that amount.  The funds received from the NWIG liquidators Cayman Islands bankruptcy of National Warranty Insurance Group ("NWIG") (http://www.nwig.com) will be added to the funds on hand which have been directly recovered by the Plan Trustee and the total of these two sums will determine the amount of money and distribution percentage available to WG's creditors.  Based upon current estimates, VSC holders are likely to receive a dividend less than 10% (ten cents on every dollar of allowed claim); however, the exact percentage will not be known until WG actually receives its share of the distribution from the NWIG estate.  After the Plan Trustee receives WG’s distribution from the NWIG liquidators, a pass through distribution to all approved WG claimants should be possible with 60 to 90 days. 

   There is not a definitive answer as to when NWIG will payout funds to its creditors, including WG.  This is the wildcard that will determine when the WG Liquidation Trust will have sufficient funds for a distribution to VSC Holders.     

    

   Subsequent status updates will be posted whenever new information is received and circumstances warrant. 

    

   If you have any questions not covered in this status update or in the Frequently Asked Questions or elsewhere on this website, you may send an e-mail directly to the Plan Trustee at gmilligan@warrantynews.com.   

    

    

CHANGE OF ADDRESS:  Any changes of address should be submitted through the following dialogue box OR by sending a letter to the Plan Trustee at:

Warranty Gold Liquidation Trust
c/o Gregory S. Milligan
Liquidating Trustee
P.O. Box 13166 - Capitol Station
Austin, Texas 78711-3166

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