STATUS UPDATE #12

NOTE: The Status Updates are cumulative. Please read all twelve updates.

Case Administration

Over 26,534 proofs of claims have been recorded to date. The Clerk of the Bankruptcy Court has advised me that all timely filed claims have been docketed. If you have questions regarding proofs of claim, I recommend you have your attorney research your questions. Please have your attorney research your claim to determine if it is filed.

Litigation

I will not comment on pending litigation other than to describe the procedural status of such matters.

I have filed two separate lawsuits. The first lawsuit, filed on July 13, 2006 seeks damages in excess of $750,000,000 against certain directors, officers and financial institutions. This litigation will be referred to as the State Court Action.

The second lawsuit, filed on September 13, 2006, seeks damages in excess of $70,000,000 from certain financial institutions, the indenture trustees and others. This litigation was filed in Bankruptcy Court and will be referred to as the Bankruptcy Court Action.

Below is a current status as to both the State Court Action and the Bankruptcy Court Action.

State Court Action

July 13, 2006 Complaint Filed

August 11, 2006 Defendants Filed Notice of Removal from State Court

August 18, 2006 Plaintiff Filed Motion to Remand and Abstain

September 15, 2006 Defendants Filed Memorandum in Opposition the Motion to Remand and Abstain

September 25, 2006 Plaintiff Filed Reply to Response to Motion to Remand and Abstain

October 17, 2006 Defendants Filed Memorandum in Further Opposition to Motion to Remand and Abstain

The Federal District Judge must decide whether the matter should be heard in Federal or State

Court. Awaiting the Judge.s determination.

Bankruptcy Court Action

September 13, 2006 Complaint Filed

October 13, 2006 Defendant #1 Filed Motion to Dismiss

October 26, 2006 Plaintiff.s Answering Response to Defendant #1 Motion to Dismiss

November 7, 2006 Defendant #1 Filed Reply Brief in Further Support of Motion to Dismiss

November 10, 2006 Defendant #2 Filed Motion to Dismiss

November 17, 2006 Defendant #4 Filed Motion to Dismiss

November 24, 2006 Plaintiff.s Answering Response to Defendant #2 Motion to Dismiss

November 27, 2006 Defendant #3 Filed Motion to Dismiss

December 1, 2006 Defendant #2 Filed Reply Brief in Further Support of Motion to Dismiss

The Bankruptcy Court Judge must determine whether to dismiss the Trustee.s claims against

each of the Defendants or allow the Trustee to proceed with the lawsuit. Awaiting the Judge.s

determination.

Both the State Court Action and Bankruptcy Court Action will likely take years to litigate unless

settlements are reached between all parties.