Securities and Exchange Commission v. GPB Capital Holdings, LLC, Ascendant Capital, LLC, Ascendant Alternative Strategies, LLC, David Gentile, Jeffry Schneider, and Jeffrey Lash (Case No. 21-cv-00583-MKB-VMS) (the “Case”), which was commenced and is pending in the United States District Court for the Eastern District of New York (the “Court”).

The Court entered an order on December 8, 2023 (the “Receivership Order”), appointing Joseph T. Gardemal III as the receiver (the “Receiver”) over the following entities (collectively, the “Receivership Entities”), who are now part of and together comprise the receivership estate (the “Receivership” or “Receivership Estate”). Implementation of the Receivership was stayed by order of the Court while certain of the defendants in the Case appealed the Receivership Order. However, on December 3, 2024, the U.S Court of Appeals for the Second Circuit affirmed the Court’s entry of the Receivership Order and lifted the stay. Therefore, the Receivership is now proceeding in accordance with the Receivership Order.

RECEIVERSHIP ENTITIES

• Armada Waste Management GP, LLC (fka GPB Waste Management GP, LLC)
• Armada Waste Management, LP (fka GPB Waste Management, LP)
• Armada WM SLP, LLC (fka GPB WM SLP, LLC)
• GPB Auto SLP, LLC
• GPB Automotive Income Fund, Ltd.
• GPB AUTOMOTIVE INCOME SUB-FUND, LTD.
• GPB Automotive Portfolio, LP
• GPB Capital Holdings, LLC
• GPB Cold Storage, LP
• GPB H2 SLP, LLC
• GPB H3 SLP, LLC
• GPB Holdings II, LP
• GPB Holdings III GP, LLC
• GPB Holdings III, LP
• GPB Holdings Qualified, LP
• GPB Holdings, LP
• GPB NYC Development, LP
• GPB NYCD SLP LLC
• GPB SLP, LLC
• Highline Management Inc.

When the U.S. Securities and Exchange Commission (the “SEC”) files a lawsuit to enjoin conduct prohibited under various securities laws, the SEC sometimes seeks appointment, by a court, of a receiver to take control of the assets and operations of the defendant. That is what has occurred here. The Receiver is a fiduciary of the Court and the Court oversees the Receiver’s duties and activities. The Receiver is charged with, among other things, marshaling and preserving the assets of the Receivership Entities, making distributions to investors (“Investors”) in the Receivership Entities and to creditors, and winding down the Receivership Entities.

Epiq Corporate Restructuring, LLC is the claims and noticing agent for the Receivership (the “Claims Agent”). General information about the Receivership, including access to Court filings, is available on the Claims Agent’s website: https://dm.epiq11.com/GPBCapital. In addition, Investors may obtain information at: [email protected].

Epiq is an independent third party and is the Claims Agent for the Receivership. Epiq will be handling the mailing of all distributions and materials related to the Receivership to Investors and creditors and the processing of proof of claim forms for the Receivership.

You can submit an inquiry through the Claims Agent’s website: https://dm.epiq11.com/GPBCapital or by submitting your question to the Claims Agent at [email protected].

If your contact information changes, you must complete and submit a change of information form which can be found on the Claims Agent’s website: https://dm.epiq11.com/GPBCapital. The completed change of information form must be emailed to the Claims Agent as a .pdf attachment to: [email protected]. It is your responsibility to keep the Receiver apprised of your current email and mailing address in order to receive distributions (if any), notices and other communications from the Receiver, and the Receivership Estate.

The Receiver will be proposing a plan of distribution (the “Distribution Plan”) to the Court on or before January 17, 2025, as required by the Receivership Order. The Distribution Plan which will be available on the Claims Agent’s website, https://dm.epiq11.com/GPBCapital, once it has been filed with the Court. If the Court approves the Distribution Plan, there will be an initial distribution to Investors in certain funds (the “Initial Distribution”) and subsequent distributions to the extent there is money available to make such distributions.

Once the Court enters an order approving the Distribution Plan, the Receiver intends to make the Initial Distribution within fourteen business days thereafter. The Receiver anticipates making additional rounds of distributions as the Receivership progresses, remaining assets are liquidated, and claims involving third parties are pursued or resolved. However, the precise timing of those distributions will depend on the progress of the foregoing and the claims resolution process.

You are encouraged to monitor the Claims Agent’s website for (i) general announcements, (ii) the Distribution Plan, once it has been filed with the Court, (iii) the Court’s order approving the Distribution Plan, once it has been entered, and the final Distribution Plan as approved by the Court, (iv) additional distribution related information, and (v) the Receiver’s quarterly reports. The website can be reached at: https://dm.epiq11.com/GPBCapital.

A distribution plan, once it has been approved by a court, governs how the distributable funds of a receivership estate will be apportioned among investors and other claimants, and the process by which such funds will be distributed. Further, a distribution plan addresses how claims are calculated, the relative priority of claims once they are allowed, sources for paying claims, and the methodology for paying claims.

The Receiver’s Distribution Plan in this Case, if approved by the Court, would achieve an equitable distribution of assets to Investors and creditors pursuant to the distribution methodology that will be described in the Receiver’s motion seeking approval of the Distribution Plan and in the Distribution Plan.

A copy of the Receiver’s Distribution Plan will be available on the Claims Agent’s website once it has been filed with the Court: https://dm.epiq11.com/GPBCapital.

Not yet. The Receiver will be filing the Distribution Plan with the Court on or before January 22, 2024, as required by the Court’s order appointing the Receiver. The Distribution Plan will be available on the Claims Agent’s website: https://dm.epiq11.com/GPBCapital once it has been filed with the Court.

Not yet. However, a summary of the Receiver’s Distribution Plan will be available in the Receiver’s motion seeking approval of the Distribution Plan once it has been filed with the Court, and the distribution details will also be set out in the Distribution Plan itself. You will be able to find a copy of the motion on the Claims Agent’s website at https://dm.epiq11.com/GPBCapital. We strongly encourage you to review the motion and also the full version of the Distribution Plan that will be available on the website as well.

Estimated recoveries will be made available to Investors in the Distribution Plan. In addition, if the Court approves the Distribution Plan, you may receive a notice from the Receiver that includes a calculation of your specific recovery.

The Receiver, through the Claims Agent, will make direct payment to Investors and creditors using the addresses and other information in the books and records of the Receivership Estate. Where appropriate, distributions may also be made to an Investor’s investment custodian or counsel. The Receiver is authorized, and has discretion, to make distributions to an Investor’s custodian or counsel, and if not held in a custodial account, the distribution will be made directly to the Investor.

The Receiver and Epiq are not permitted to give you legal or tax advice. Therefore, the Receiver strongly encourages all Investors and creditors to consult with their own legal and tax advisors in connection with Receivership, the Distribution Plan, and related matters.

The Receivership Entities should continue in existence during the course of the Receivership under the control and governance of the Receiver. After a reasonable amount of time to allow the Receiver to administer the Distribution Plan, and after the Receiver has completed any related ancillary claims or third-party litigation, the Receiver will wind down the business operations of the Receivership Entities and the Receivership Estate and arrange for the payment from Receivership assets available for such purpose any outstanding obligations to creditors, employees, and agents of the Receivership Entities and Receivership Estate. The Receiver is vested with management authority for the Receivership Entities and the Receivership Assets and reserves the right to exercise powers provided under the order commencing the Receivership, including the right to commence Chapter 11 cases.