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Fpic liquidating distribution

When determining whether a closely held corporation should be liquidated, the tax consequences to the shareholders should be considered.

Creditors are always senior to shareholders in receiving the corporation's assets upon winding up.

However, in case all debts to creditors have been fully satisfied, there is a surplus left to divide among equity-holders.

The Conservation and Liquidation Office (CLO) recognizes the rights of claimants to assign their approved claims.

The CLO is obliged to ensure that assignments are valid and that the processing of assignments does not create an undue burden on estate resources. Please click on the following Notice of Court Order for the procedure to obtain claim records and for information regarding the court order authorizing the liquidated Superior National Insurance Companies to discontinue responding to the third party photocopy and subpoena requests.

If the corporation distributes its assets for later sale by the shareholders, the assets generally “come out” of the corporation with a basis equal to FMV (and with the related recognition of gain or loss under Sec.

331 for the difference between the FMV and the shareholder’s basis in the stock).

This mainly occurs during voluntary liquidations of solvent corporations.

331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits (E&P).

If you are looking for information about a specific insurance company that has been placed under conservation or liquidation by the State of California, please visit our Companies page.

The CLO, on behalf of the Insurance Commissioner, rehabilitates and/or liquidates, under Court supervision, troubled insurance enterprises domiciled in the State of California.

On May 22, 2015, the FPIC estate filed an application for a final distribution (pro-rata 85.24%) of estate assets.