Kimberly Husted

This Chapter 11 case was filed 4/24/18 and converted to Chapter 7 on 10/2/18. I was Selected as the permanent Trustee on 12/10/18.

The Estate will be pursuing a number of lawsuits to recover funds based on a variety of legal theories. The funds on hand in the Bankrutpcy Estate accounts are all claimed as collateral to the secured liens the business owed, or will require an agreement with the secured lender to sort out and determine amounts that should be paid (these are the Cal Recycle funds). As soon as we have an agreement ready for court approval this site will be updated.

For former employees with claims filed - you should update your mailing address if you move. You would file an amended claim by accessing the online electonic claim sytem at www.caeb.uscourts.gov. Remember this is an amendment to your original claim; you will update the timely filed claim you made for unpaid vacation time, not start over or recalculate the amount. It is unlikely any payments will be made to this level of claim for at least 2 years.

UPDATE - 5/2/19 on 401K distributions. 401 K funds have been released. Per an email from the provider -

If participants call regarding their checks, balance, or account related questions, please have them call

Participant Services at 866-809-8146 and tell them NOT to enter their SSN and wait on the line for a representative.

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The Trustee's office has recieved a startling number of undeliverable 401K forms and W-2 forms. If you are missing forms you can call the office or email the Trustee and have your documents remailed to a corrected address.

You should also update your claim on the court website with any new address for future distributions.
Note that there is no distribution contemplated to claimants, except for the Cal Recycle collector payments, in the next few months.

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3/28/19 update on 401K distributions

Per Vanguard/Ascensus - Right now Ihave the plan looking at a blackout date of April 8^th and liquidation on April 15^th.

Distribution checks would be sent on or before April 30^th.

If participants that have an address change they will need to contact the Participant Services Team at 866-794-2145 to go over the process of reissuing the check to their correct address.
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week of February 11, 2019 - ADP prepared the W-2 Forms for employees of ECS from January 1, 2018 through July 3, 2018. Those were placed in the mail this week. If you have moved you may still be able to download your W-2 from the ADP website.

For employees who worked as 1099 contractors during the Chapter 11 or any ECS Contractor in 2018, those 1099 forms were mailed to you at the beginning of the month. If you find any error with your 1099 you can contact me via email explaining the issue. A corrected 1099 can be prepared and the report to the IRS will be corrected if you contact me by 2/25/19.

If you are a former employee who participated in the 401K plan, please download the attached documents. Instructions 401K.pdf ECS.Plan.Termination.Form.pdf

If you are a Collector owed money please note that I am working to determine now the best method of proceeding. There are spreadsheets being reviewed now for accuracy of proposed payments. No payment will be made until the court approves a motion allowing me to disburse the funds. Please note: Pre-petition debt owed to you may be treated differently than debt owed to you while the Debtor was in Chapter 11 status (April 24, 2018 to October 1, 2018).
Collectors do not need to attend the court hearings or 341 meetings of the Debtor. You can attend, but you do not need to be attending to have your documented claim considered for payment. There may be a claim form required in the near future.