LUB Liquidating Trust Announces $0.44 Cash Distribution to Unitholders

LUB Liquidating Trust Declares Cash Distribution

On January 13, 2025, the LUB Liquidating Trust, established to facilitate the liquidation of assets once held by Luby’s Inc., announced a cash distribution of $0.44 per unit. This distribution will be disbursed on January 21, 2025, to unitholders who are on record as of this announcement date.

Liquidation Progress

The trust, created following the conversion of Luby's, Inc. to the liquidating entity on May 31, 2022, continues to navigate the complexities of monetizing its remaining assets. Currently, it possesses one real estate property, a functioning location for Luby's cafeterias, under the management of a third-party operator. Recently, the Trust sold off another real estate asset while also monetizing certain notes receivable, resulting in a total value exceeding previous liquidation estimates by $0.08 per unit.

Despite this progress, the Trust is still actively pursuing options for the disposition of its remaining assets. The strategy remains focused on maximizing the financial recovery for unitholders, although the timing and size of future distributions are uncertain and will depend heavily on the monetization outcomes of these assets.

Future Distributions and Judicial Oversight

The recent distribution reflects the positive trajectory of the Trust, approved by the Delaware court to allocate cash available for distribution while ensuring a minimum reserve requirement is maintained. Since the inception of the liquidation plan, the total distributed amount per unit or common share will reach $4.24 following the current declaration.

It’s essential for current unitholders to keep in mind that the ability to transfer member interests in the Trust is limited, primarily restricted by legal stipulations including inheritance laws.

About LUB Liquidating Trust

LUB Liquidating Trust was born from the liquidation plan and dissolution of Luby's Inc., a move sanctioned by shareholders on November 17, 2020. The Trust is actively looking for potential buyers for its last remaining assets, emphasizing a strategic approach to maximize value for stakeholders throughout this winding-down process.

Cautionary Outlook

This announcement incorporates forward-looking statements as defined by federal securities laws, indicating possible future outcomes regarding asset sales and the financial implications therefrom. However, the Trust cautions that various factors might influence actual results, potentially causing them to diverge significantly from current expectations, including general economic conditions and operational challenges.

For unitholders seeking clarity or further details about their investments or future distributions, John Garilli, the interim CEO, is available for contact through the Trust's official communication channels.

This overall framework provided by LUB Liquidating Trust ensures transparency and maintains unitholder engagement while navigating through necessary liquidation processes.