This template is a Settlement Agreement for Avoidance Actions (Post-Confirmation Trust) to be filed in a bankruptcy proceeding. This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. This settlement agreement is between a post-confirmation trust and the recipient of avoidable transfers. Avoidance actions generally allow the estate to recover certain pre-petition transfers and obligations. These actions arise under Chapter 5 of the Bankruptcy Code and include, among others, preference actions under Section 547 and fraudulent conveyance actions under Sections 544 and 548. Section 550 authorizes the recovery of the avoided transfers or obligations. Many Chapter 11 plans establish one or more trusts to wind-up a debtor's estate and carry out the terms of the Chapter 11 plan. Post-confirmation trusts are generally used to, among other things, litigate claims on behalf of a debtor's estate (including avoidance actions). The administration of the post-confirmation trust is sometimes also subject to oversight by a plan advisory committee consisting of selected members of the former creditors' committee. The committee is set up through the plan and acts as a representative of the beneficiaries of the trust. The plan, trust documents, and/or other order (such as a settlement procedures order) typically set up the mechanism for settling avoidance actions (and other litigation). The procedures usually allow the post-confirmation trustee to settle some or all avoidance actions without further court order (but the settlement is still deemed approved by the court). In some cases, the oversight committee must affirmatively consent to the settlement for the agreement to be considered approved under the procedures. In other cases, the liquidating trustee must give notice of the settlement to the oversight committee and certain other parties. If no party objects, the settlement is deemed approved by the court and a hearing is not required. Thus, a motion to approve the settlement under Bankruptcy Rule 9019 is not required (under either scenario). This template is used for settlement agreements made between a post-confirmation trust and a defendant (without the need for court approval). For a template settlement agreement where the parties are seeking court approval, see Settlement Agreement for Avoidance Actions (Bankruptcy Rule 9019). For a full listing of key content that provides an overview of important topics when litigating disputes in bankruptcy cases, see Bankruptcy Litigation Resource Kit. For related information, see: • Chapter 11 Liquidating Plans • Preferences • Fraudulent Transfers • Fraudulent Conveyances versus Preference Actions • Rule 9019 Settlement Agreements • Post-confirmation Trusts