JPMorgan recovers and pays out 104% of unsecured claims
New York, June 28, 2006 – JPMorgan Bankruptcy & Settlement Services, a leading provider of Chapter 11 services, today announced that it has distributed full payment totaling $891 million to unsecured creditors in its role as the Liquidating Trustee for Farmland Industries’ bankruptcy.
JPMorgan Bankruptcy & Settlement Services reached the full payment mark this week, as it sent out checks for $12 million. The payment means all unsecured creditors will have received 104% of their claims allowed under the bankruptcy plan. This payment is the sixth distribution of funds from the Farmland Industries Liquidating Trust, bringing the total to $891 million paid to creditors of Farmland Industries, the former Fortune 500 company which was the largest farmer-owned agricultural cooperative in North America.
“JPMorgan’s ability to make unsecured creditors whole in two years is a milestone, exceeds expectations, and is a clear indication of our exceptional ability to maximize the value and recovery of assets,” said Jeffrey Ayres, Vice President JPMorgan and the Relationship Manager for the FI Liquidating Trust. “The high volume of assets secured demonstrates the effectiveness of JPMorgan’s Bankruptcy & Settlement Services team and processes, and its partnership with former employees of Farmland retained by the Trust.”
The payments are being made according to a confirmed plan approved by the United States Bankruptcy Court for the Western District of Missouri (Kansas City). The 104% recovery represents 100% of principal plus the maximum amount of interest allowed under the plan. JPMorgan was named administrator of the FI Liquidating Trust on May 1, 2004 and will oversee liquidation of additional assets in the Trust in the future, including potential recoveries from pending litigation.
JPMorgan Bankruptcy & Settlement Services offers a full range of services from managing assets, investing proceeds, cash management, claims administration, disbursement services, liquidating trustee and plan administration.
The bankruptcy services are offered by JPMorgan Bankruptcy & Settlement Services, which is part of JPMorgan Worldwide Securities Services. For more information on JPMorgan Bankruptcy & Settlement Services, please go to
www.jpmorgan.com/info/bssmedia.
About JPMorgan Worldwide Securities Services
JPMorgan Worldwide Securities Services, a division of JPMorgan Chase Bank, N.A., is a global industry leader with $11.7 trillion in assets under custody. JPMorgan provides innovative custody and securities products and services to the world’s largest institutional investors and debt and equity issuers. JPMorgan Worldwide Securities Services leverages its scale and capabilities in more than 80 markets to help clients optimize efficiency, mitigate risk and enhance revenue through custody and investor services as well as securities clearance and trust services.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.3 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at
www.jpmorganchase.com.
