Trustee in Pike Family Nurseries Bankruptcy Liquidation Case Estimates Net Preference Claim Recoveries of $500,000 Will be Realized by 12/31/2009.

The case of:

In Re: Pike Nursery Holding LLC, d/b/a Pike Family Nurseries
d/b/a Pike Nurseries
(“Pike”), Case No. 07-79129 in the United States Bankruptcy Court for the Northern District of Georgia

was filed on November 14, 2007.

Following a sale of assets by the debtor-in-possession, the Bankruptcy Judge appointed a trustee (Marcus A. Watson), and on March 19, 2008 the case was converted to a Chapter 7 liquidation proceeding.

On December 23, 2008, the trustee filed his interim reports for the periods ending 6/30/08 and 9/30/08.

The interim reports include the trustee’s estimate that, by 12/31/2009, he will make a net recovery of $500,000 in preference claims.

The trustee previously indicated that the estate may be “administratively insolvent,” meaning that there may not be enough assets in the estate to make any payments to general unsecured creditors on their claims for sums owed by Pike when the bankruptcy was filed.  The interim reports seem to bear this out, in that the claims process has been put on “hold” to await a determination of whether or not there will be assets eligible for distribution.