American Spectrum Realty, Inc. filed second amended plan of liquidation with related disclosure statement in the US Bankruptcy Court on April 18, 2016. As per the amended reorganization plan filed, Professional Compensation claim of $2.41 million will also include claims of Levene, Neale, Bender, Yoo & Brill LLP of $0.18 million and will be paid in full in cash. Allowed General Unsecured Claims and the Dunham Funds will share the Liquidating Trust Assets equally if the Allowed General Unsecured Claims are not more than $14 million.

If Allowed General Unsecured Claims are higher than $14 million, the Dunham General Unsecured Claim is capped at $14 million and General Unsecured Creditors and the Dunham Funds will share pro rata in all Liquidating Trust Assets. Once Allowed General Unsecured Claims have been paid 22.5% of their Allowed Claims, then thereafter the Dunham Funds shall receive 2/3 of all distributions and Allowed General Unsecured Creditors shall receive 1/3 of all distributions from the Liquidating Trust. The debtor disputes Secured Claim of Crown Energy Services, Inc. and Crown Building Maintenance, Inc. of $283.92 million as a secured claim.

This creditor has a security interest in subsidiaries of the Debtor but only an unsecured Stipulated Judgment against the Debtor. This Creditor may receive payment from the non-Debtor entity which is liable to the Creditor and to the extent it is not paid in full, this Creditor will be treated as a General Unsecured Creditor. There were no other changes in the treatment of classes.