After the close of trading on August 27, 2004, the remaining assets of Malan Realty Investors, Inc. were transferred to Malan Liquidating Trust ("Malan LT"). Malan LT was formed in accordance with the Plan of Liquidation that Malan shareholders approved in August 2002 and will continue to wind up the Company's affairs with no objective to continue or engage in the conduct of a trade or business, except as necessary for the orderly liquidation of the Trust's assets. Interests in Malan LT are no longer transferable, except for by will, intestate succession, or under other similar limited circumstances.
Shareholders owning stock in Malan Realty Investors as of the close of business on August 27, 2004 now own "Units" in Malan LT in the same amount. Therefore, each such holder's pro rata interest in Malan LT is exactly the same as in Malan Realty Investors as of that date.
As previously disclosed at the time of shareholder adoption of the Plan of Liquidation, the exchange of common stock for Units is a taxable event. Information about the value of the Units received in Malan LT will be available when we furnish Form 1099s for 2004, which will also be used for filing tax returns for the year 2004.
The duration of Malan LT's existence will be determined by the time necessary to distribute all of the Trust's assets. As asset sales occur, distributions will be made as determined by the Sponsor Trustees, who replaced the Malan Realty Investors Board of Directors (and were appointed from Malan Realty Investors Board) on the date of the transfer of assets to Malan LT. Currently, it is estimated that the final liquidation process could take as much as two years.