Common use of Duration and Extension Clause in Contracts

Duration and Extension. The Liquidating Trust shall be dissolved at the earlier of (even if the Liquidating Trust Beneficiaries have not been paid in full) (i) all of the Liquidating Trust Assets having been distributed pursuant to the Plan and this Agreement, (ii) the Liquidating Trustee determining, in his reasonable business judgment, and with the consent of the Liquidating Trust Advisory Board, that the administration of the Liquidating Trust Assets is not likely to yield sufficient additional proceeds to justify further pursuit, or (iii) all distributions required to be made by the Liquidating Trustee under the Plan and this Agreement having been made; provided, however, that in no event shall the Liquidating Trust be dissolved later than three (3) years from the Effective Date unless the Bankruptcy Court, upon motion by a party-in interest within the three (3) months prior to the third (3rd) anniversary (or at least three (3) months prior to the end of an extension period), determines that a fixed-period extension is necessary to facilitate or complete the recovery and liquidation of the Liquidating Trust Assets. Notwithstanding the foregoing, multiple extensions can be obtained so long as Bankruptcy Court approval is obtained at least three (3) months prior to the expiration of each extended term; provided, however, that the Liquidating Trustee receives an opinion of counsel or a favorable ruling from the Internal Revenue Service that any further extension would not adversely affect the status of the Liquidating Trust as a grantor trust for federal income tax purposes.