7.	Reserves for Expected Costs of Liquidation and Residual Wind-Down Claims

The following is a summary of the activity in the reserves for expected costs of liquidation for the three months ended June 30, 2014 and 2013:


	Three months ended June 30, 2014
(in thousands)	Reserve for Expected Wind-Down Costs			Reserve for Expected Reporting Costs			Reserve for Indenture Trustee/Fiscal and Paying Agent Costs			Reserve for Avoidance Action Defense Costs		Reserve for Residual Wind-Down Costs			Total Reserves for Expected Costs of Liquidation
Balance, March 31, 2014	$	22,529		$	12,235		$	464		$	—	$	1,258		$	36,486
Plus additions to (reductions in) reserves		2,437			(593	)		—			—		—			1,844
Less liquidation costs incurred:
Trust Professionals		(1,526	)		(585	)		—			—		(20	)		(2,131	)
Trust Governance		(917	)		(453	)		(18	)		—		—			(1,388	)
Other Administrative Expenses		(10	)		(121	)		—			—		—			(131	)

Balance, June 30, 2014	$	22,513		$	10,483		$	446		$	—	$	1,238		$	34,680


	Three months ended June 30, 2013
(in thousands)	Reserve for Expected Wind-Down Costs			Reserve for Expected Reporting Costs			Reserve for Indenture Trustee/Fiscal and Paying Agent Costs			Reserve for Avoidance Action Defense Costs			Reserve for Residual Wind-Down Costs			Total Reserves for Expected Costs of Liquidation
Balance, March 31, 2013	$	38,043		$	20,442		$	499		$	898		$	1,631		$	61,513
Plus additions to (reductions in) reserves		141			(1,819	)		—			—			—			(1,678	)
Less liquidation costs incurred:
Trust Professionals		(3,604	)		(685	)		—			(138	)		(237	)		(4,664	)
Trust Governance		(973	)		(449	)		(8	)		—			—			(1,430	)
Other Administrative Expenses		(13	)		(127	)		—			—			—			(140	)

Balance, June 30, 2013	$	33,594		$	17,362		$	491		$	760		$	1,394		$	53,601

During the three months ended June 30, 2014, estimates of expected Wind-Down Costs and estimates of expected Reporting Costs (for which there is a reasonable basis for estimation) increased by $2.4 million and decreased by $0.6 million, respectively. During the three months ended June 30, 2013, estimates of expected Wind-Down Costs and estimates of expected Reporting Costs (for which there is a reasonable basis for estimation) increased by $0.1 million and decreased by $1.8 million, respectively. Such revisions in the estimates were recorded as additions to (reductions in) the reserves for expected costs of liquidation in such periods. The GUC Trust has recorded reserves for expected costs of liquidation that represent amounts expected to be incurred over the estimated remaining liquidation period of the GUC Trust for which there was a reasonable basis for estimation as of June 30, 2014.

The amount of liquidation costs that will ultimately be incurred depends both on that time period and on the extent of activities required for the GUC Trust to complete its functions and responsibilities under the Plan and the GUC Trust Agreement. Significant uncertainty remains both as to that time period and as to the extent of those activities. As of June 30, 2014, the recorded reserves for expected costs of liquidation reflect estimated costs for a remaining liquidation period extending through October 31, 2016, which has been estimated predominantly on a probability-weighted basis as permitted under U.S. GAAP and which the GUC Trust believes is the most appropriate measurement basis in the circumstances. Where an outcome is estimated to be likely, the likely outcome has been used as the best estimate and no weight has been given to the unlikely outcome. The remaining liquidation period is dependent predominantly on the estimate of the remaining period of time for resolution of the Term Loan Avoidance Action, as well as certain additional estimated time as necessary to wind down the GUC Trust. In addition, certain liquidation costs that are expected to be prepaid by the GUC Trust upon its dissolution have also been estimated and accrued. It is reasonably possible that the GUC Trust’s estimates regarding the costs and remaining liquidation period could change in the near term.

The following is a summary of the activity in the reserves for Residual Wind-Down Claims for the three months ended June 30, 2014 and 2013:


(in thousands)	2014			2013
Balance, beginning of period	$	28,698		$	30,855
Less claims allowed during the period		(363	)		(1,163	)

Balance, end of period	$	28,335		$	29,692