Young Conaway Wins Court Approval of Chapter 11 Plan for Trustee for The Institute for Cancer Prevention

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The chapter 11 trustee for the 35-year-old, world-renowned Institute for Cancer Prevention obtained conditional approval from the U.S. Bankruptcy Court for the Southern District of New York of his chapter 11 plan of liquidation (Case No. 04-16148 (ALG)). The Order confirming the Plan was subject to receiving final approval from the United States Department of Health and Human Services, National Cancer Institute ("NCI") on a global settlement that involved the Institutes' former officers, board of trustees, auditors and financial consultant. NCI delivered its approval on January 4, 2007. After the chapter 11 filing on September 21, 2004, the Institute for Cancer Prevention captured headlines as it was forced to shut the doors of its Manhattan office and upstate research labs after federal investigators alleged that it had misspent $5.7 million in federal grants.

The U.S. Bankruptcy Court for the Southern District of New York conditionally confirmed the chapter 11 plan of liquidation filed by Hobart G. Truesdell of Walker Truesdell & Associates, Inc. (Case No. 04-16148 (ALG)). The Order confirming the Plan was subject to receiving final approval from the United States Department of Health and Human Services, National Cancer Institute ("NCI") on a global settlement that involved the Institutes' former officers, board of trustees, auditors and financial consultant. NCI delivered its approval on January 4, 2007. The Plan was accepted by all voting creditors and provides for a full distribution to all administrative and priority claims and a modest distribution to general unsecured claims.

After the chapter 11 filing on September 21, 2004, the 35-year-old, world-renowned Institute for Cancer Prevention captured headlines as it was forced to shut the doors of its Manhattan office and upstate research labs after federal investigators alleged that it had misspent $5.7 million in federal grants. Soon after, Hobart "Hobie" Truesdell was appointed as the chapter 11 trustee in the troubled case and was charged with cleaning up the mess and trying to provide a recovery to creditors in a case where a recovery looked unlikely.

"We are very pleased with the court's decision," said counsel for the chapter 11 trustee, Joseph Malfitano of Young Conaway Stargatt & Taylor, LLP. "This was a difficult case and the results obtained are the direct result of the hard work and dedication of Mr. Truesdell."

Mr. Truesdell expressed appreciation to the Court, Young Conaway, and other parties involved in the case for their patience and support in reaching this milestone. Mr. Truesdell hopes to make a distribution to creditors in the first quarter of 2007.

About Young Conaway Stargatt & Taylor, LLP

Young Conaway, one of Delaware's largest law firms, counsels and represents national, international and local clients, handling sophisticated advisory and litigation matters involving bankruptcy, corporate law and intellectual property. Now in its fifth decade, Young Conaway also guides regional businesses and individuals through a myriad of employment, real estate, tax, estate planning, environmental and banking issues from the firm's offices in downtown Wilmington.

About Walker Truesdell & Associates

Walker Truesdell provides comprehensive senior management, advisory and administrative services to bankrupt companies and to companies experiencing financial difficulties. In a bankruptcy case, Walker Truesdell is retained typically as Trustee, Restructuring Officer, Liquidation Agent or Plan Administrator.

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