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How to Donate Unclaimed Liquidation Funds
Pursuant to applicable local rules (see below), a chapter 11 liquidating plan may provide that any unclaimed funds may be redistributed to a tax-exempt, nonprofit, nonreligious organization identified in the plan or disclosure statement accompanying the plan. The ABI Endowment Fund has been appropriately designated as a recipient of such unclaimed funds in several chapter II cases, both large and small.
Sample Local Rule:
Disposition of Undistributed Funds under a Chapter 11 Liquidating Plan.
(1) Undistributed funds are any funds other than unclaimed funds, including, but not limited to, funds that cannot be disbursed because (a) a creditor has affirmatively rejected a distribution, (b) the administrative costs of distribution effectively interfere with distribution, or (c) all creditors, including administrative claimants, have been paid in full and there is no one that has a right to the funds.
(2) A chapter 1 1 liquidating plan may provide that any undistributed funds, if applicable or practicable, may be redistributed to other creditors or administrative claimants or donated to a not-for-profit, non-religious organization identified in the plan or disclosure...