WATTS HEALTH FOUNDATION

Case Highlights

• Chair of Creditors’ Committee in Chapter 11 of post-conservatorship debtor
• Interactive work with California Department of Managed Heath Care

Case Narrative

DSI is serving as the Trustee of this California state law created Creditor Trust.  The trust was formed by order of the Superior Court after the California Department of Managed Health Care sought and obtained the appointment of a conservator for the company.  Upon the effective date of the trust, cash and real property assets were transferred to the trustee for administration.  Included in the transferred assets were various pieces of real property, including the Watts Community Garden, which was sold to The Trust For Public Land as a cornerstone of its efforts to generate more neighborhood parks in close proximity to dense population areas.  (See No Place to Play, a report published by the Trust For Public Land, April 2004.)  General unsecured creditors of the Foundation recovered in excess of 90 percent of their claims from the trustee’s efforts.  DSI also served as co-chair of the Official Committee of Unsecured Creditors when the post-conservatorship debtor filed for bankruptcy.