FORM 10-Q


                    SECURITIES AND EXCHANGE COMMISSION
                          Washington D.C.   20549




                Quarterly Report Under Section 13 or 15(d)
                  of the Securities Exchange Act of 1934




For the quarter ended March 31, 2006            Commission file #0-16976




                           ALP LIQUIDATING TRUST
          (Exact name of registrant as specified in its charter)



                Delaware                        36-6044597
      (State of organization)          (IRS Employer Identification No.)



  900 N. Michigan Avenue., Chicago, IL            60611
 (Address of principal executive office)         (Zip Code)



Registrant's telephone number, including area code 312/915-1987



Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 (the "Exchange Act") during the preceding 12 months (or for such a
shorter period that registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes [ X ]   No [   ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).  Yes [   ]   No [ X ]

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).  Yes [   ]   No [ X ]



<PAGE>


                             TABLE OF CONTENTS




PART I      FINANCIAL INFORMATION


Item 1.     Financial Statements. . . . . . . . . . . . . . . .      3


Item 2.     Management's Discussion and Analysis or
            Plan of Operation . . . . . . . . . . . . . . . . .     15

Item 4.     Controls and Procedures . . . . . . . . . . . . . .     18



PART II     OTHER INFORMATION


Item 1.     Legal Proceedings . . . . . . . . . . . . . . . . .     18

Item 6.     Exhibits. . . . . . . . . . . . . . . . . . . . . .     18



<PAGE>


PART I.  FINANCIAL INFORMATION

     ITEM 1.  FINANCIAL STATEMENTS


                           ALP LIQUIDATING TRUST

                  STATEMENT OF NET ASSETS IN LIQUIDATION




                                  ASSETS
                                  ------

                                             MARCH 31,
                                               2006        DECEMBER 31,
                                            (Unaudited)       2005
                                           -------------   ------------

Cash and cash equivalents . . . . . . . . .  $29,333,125    $29,765,135
Restricted cash . . . . . . . . . . . . . .      664,302        664,159
Prepaid expenses and other assets . . . . .      131,650        133,276
                                             -----------    -----------

          Total assets. . . . . . . . . . .   30,129,077     30,562,570
                                             -----------    -----------


                                LIABILITIES
                                -----------

Estimated costs to be incurred
  through June 30, 2007 . . . . . . . . . .    4,272,628      4,594,060
Other current liabilities and
  accrued expenses. . . . . . . . . . . . .    3,178,045      3,637,983
                                             -----------    -----------
          Total liabilities . . . . . . . .    7,450,673      8,232,043
                                             -----------    -----------

          Net assets in liquidation . . . .  $22,678,404    $22,330,527
                                             ===========    ===========


























The accompanying notes are an integral part of these financial statements.


<PAGE>


                           ALP LIQUIDATING TRUST

             STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION

                     THREE MONTHS ENDED MARCH 31, 2006

                                (UNAUDITED)




Net assets in liquidation at December 31, 2005. . . . . .   $22,330,527

Proceeds and revenues . . . . . . . . . . . . . . . . . .       436,435

Adjustment to estimated costs to be incurred through
  June 30, 2007 . . . . . . . . . . . . . . . . . . . . .       321,432

Costs incurred during liquidation period. . . . . . . . .      (409,990)
                                                            -----------

Net assets in liquidation on March 31, 2006 . . . . . . .   $22,678,404
                                                            ===========













































The accompanying notes are an integral part of these financial statements.


<PAGE>


                           ALP LIQUIDATING TRUST

        CONSOLIDATED STATEMENTS OF OPERATIONS (GOING CONCERN BASIS)

                     THREE MONTHS ENDED MARCH 31, 2005
                                (UNAUDITED)



Revenues:
  Other operating revenues. . . . . . . . . . . . . . .   $    51,744
                                                          -----------
      Total revenues. . . . . . . . . . . . . . . . . .        51,744
                                                          -----------
Cost of revenues:
  Other operating expense . . . . . . . . . . . . . . .           213
                                                          -----------
      Total cost of revenues. . . . . . . . . . . . . .           213
                                                          -----------
Gross operating profit. . . . . . . . . . . . . . . . .        51,531
Selling, general and administrative expenses. . . . . .      (733,351)
                                                          -----------
      Net operating loss. . . . . . . . . . . . . . . .      (681,820)

Interest income . . . . . . . . . . . . . . . . . . . .       322,155
Equity in losses of unconsolidated ventures . . . . . .        (2,620)
                                                          -----------
      Net loss. . . . . . . . . . . . . . . . . . . . .   $  (362,285)
                                                          ===========
      Net loss per Limited Partnership Interest
        prior to the formation of ALP
        Liquidating Trust . . . . . . . . . . . . . . .   $      (.88)
                                                          ===========
      Cash distributions per Limited
        Partnership Interest prior to the
        formation of ALP Liquidating Trust. . . . . . .   $     25.00
                                                          ===========































The accompanying notes are an integral part of these financial statements.


<PAGE>


                           ALP LIQUIDATING TRUST

        CONSOLIDATED STATEMENTS OF CASH FLOWS (GOING CONCERN BASIS)

                     THREE MONTHS ENDED MARCH 31, 2005
                                (UNAUDITED)


Net loss. . . . . . . . . . . . . . . . . . . . . . . .   $   (362,285)
Charges (credits) to net loss from operations
 not requiring (providing) cash:
  Depreciation. . . . . . . . . . . . . . . . . . . . .          3,493
  Amortization of discount on held-to-maturity
    debt securities . . . . . . . . . . . . . . . . . .       (116,054)
  Equity in losses of unconsolidated ventures . . . . .          2,620
Changes in:
  Restricted cash . . . . . . . . . . . . . . . . . . .         48,443
  Trade and other accounts receivable . . . . . . . . .            526
  Amounts due to/from affiliates, net . . . . . . . . .         (5,983)
  Prepaid expenses and other assets . . . . . . . . . .        (53,751)
  Accounts payable, accrued expenses and
    other liabilities . . . . . . . . . . . . . . . . .       (682,552)
                                                          ------------
          Net cash used in operating activities . . . .     (1,165,543)
                                                          ------------

Investing activities:
  Acquisition of held-to-maturity debt securities . . .    (31,689,622)
  Proceeds from held-to-maturity debt securities. . . .     10,000,000
  Joint venture distributions . . . . . . . . . . . . .         10,768
                                                          ------------
          Net cash used in investing activities . . . .    (21,678,854)
                                                          ------------

Financing activities:
  Distributions to General Partner
    and Associate Limited Partners. . . . . . . . . . .     (1,122,208)
  Distributions to Limited Partners . . . . . . . . . .    (10,099,875)
                                                          ------------
          Net cash used in financing activities . . . .    (11,222,083)
                                                          ------------

Decrease in Cash and cash equivalents . . . . . . . . .    (34,066,480)
Cash and cash equivalents, beginning of period. . . . .     37,590,586
                                                          ------------
Cash and cash equivalents, end of period. . . . . . . .   $  3,524,106
                                                          ============





















The accompanying notes are an integral part of these financial statements.


<PAGE>


                           ALP LIQUIDATING TRUST

                       NOTES TO FINANCIAL STATEMENTS

                              MARCH 31, 2006
                                (UNAUDITED)



RECENT DEVELOPMENTS

      Effective September 30, 2005, Arvida/JMB Partners, L.P. (the
"Partnership") completed its liquidation by contributing all of its
remaining assets to ALP Liquidating Trust (the "Liquidating Trust"),
subject to all of the Partnership's obligations and liabilities.  Arvida
Company, an affiliate of the general partner of the Partnership, acts as
Administrator (the "Administrator") of the Liquidating Trust.

      In connection with its formation, the Liquidating Trust issued a
total of 448,794 beneficial interest units to the partners of the
Partnership ("Unit Holders").  In the liquidation, each partner in the
Partnership received a beneficial interest in the Liquidating Trust for
each interest the partner held in the Partnership.  As a result, a
partner's percentage interest in the Liquidating Trust remains the same as
that person's percentage interest was in the Partnership immediately prior
to its liquidation.

      Upon completion of the liquidation of the Partnership, pursuant to
Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the Liquidating Trust elected to become the successor
issuer to the Partnership for reporting purposes under the Exchange Act and
elect to report under the Exchange Act effective September 30, 2005.  The
Liquidating Trust has assumed all reports filed by the Partnership prior to
liquidation of the Partnership under the Exchange Act.  Throughout this
quarterly report, references to the Liquidating Trust shall be deemed to
include activities of the Partnership prior to September 30, 2005.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      Readers of this quarterly report should refer to the audited
financial statements for the fiscal year ended December 31, 2005, which are
included in the Liquidating Trust's 2005 Annual Report on Form 10-K (File
No. 0-16976) filed on April 10, 2006, as certain footnote disclosures which
would substantially duplicate those contained in such audited financial
statements, and which are required by U.S. generally accepted accounting
principles for complete financial statements, have been omitted from this
report.  Capitalized terms used but not defined in this quarterly report
have the same meanings as in the 2005 Annual Report.

      Basis of Presentation

      Upon the formation of the Liquidating Trust, the Liquidating Trust
adopted the liquidation basis of accounting effective September 30, 2005.
The preparation of financial statements using the liquidation basis of
accounting requires us to make assumptions, judgments and estimates that
can have a significant impact on our reported net assets in liquidation.
Estimated costs to be incurred during liquidation includes an estimate of
legal fees and costs of litigation, insurance costs and other
administrative items through June 30, 2007.  Reference is made to
"Commitments and Contingencies" for a discussion of pending or threatened
litigation.  The Liquidating Trust is unable to reasonably estimate the
outcome of its pending litigation or threatened litigation and is also
unable to reasonably predict the estimated timetable to reach any such
outcome.  Estimated costs have been included through the earliest
reasonable date that pending litigation could be resolved prior to trial.
While the pending litigation may not be resolved prior to trial, and may
require a period of time significantly beyond June 30, 2007, no one point


<PAGE>


in time provides for a better estimate than any other point in time.
Actual results could differ materially from these estimates under different
assumptions or conditions.  On a regular basis an evaluation will be made
of assumptions, judgments and estimates and changes will be made if deemed
appropriate.

      Until the ultimate completion of the liquidation, winding up and
termination of the Liquidating Trust, it is currently anticipated that the
Liquidating Trust will retain substantially all of its funds in reserve to
provide for the payment of, the defense against, or other satisfaction or
resolution of obligations, liabilities (including contingent liabilities)
and current and possible future claims, including those for possible
construction repairs, homeowner warranty claims, completion of work for
certain homeowner associations and master associations and pending and
possible future litigation and environmental matters.  It is not possible
at this time to estimate the amount of time or money that it will take to
effect the Liquidating Trust's liquidation, winding up and termination.
That portion, if any, of the funds held in reserve that are not ultimately
used to pay, defend or otherwise resolve or satisfy obligations,
liabilities or claims are currently anticipated to be distributed to the
Unit Holders in the Liquidating Trust at a later date and may not be
distributed until the completion of the liquidation.

      Various factors may affect the timing of completing the liquidation,
winding up and termination of the Liquidating Trust and the amount of
liquidating distributions of funds, if any, out of those retained in
reserve.  These factors include the time and expense to resolve all
obligations, liabilities and claims, including contingent liabilities and
claims that are not yet asserted but may be made in the future.  Among
other things, additional or unanticipated remedial construction or
development costs, contingencies (including without limitation,
contingencies relating to potential homeowner warranty or other homeowner
or homeowners' association claims), delays in resolving pending or
threatened litigation or other asserted claims, delays in satisfying
conditions or obligations under permits obtained by the Partnership,
currently unasserted claims that arise in the future and other factors
could result in a reduction in future distributions to Unit Holders in the
Liquidating Trust and could extend the time, and significantly increase the
cost, to complete the liquidation, winding up and termination of the
Liquidating Trust.  While the Liquidating Trust intends to defend against
asserted claims where appropriate, it is currently not possible to identify
or assess any defenses or counterclaims that may be available to the
Liquidating Trust, or the magnitude of any claims that may be asserted.

      Use of Estimates

      The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to
make estimates and assumptions that affect the amounts reported or
disclosed in the financial statements and accompanying notes.  Actual
results could differ from those estimates.

      Cash and Cash Equivalents

      The Liquidating Trust considers all highly liquid investments
purchased with an original maturity of less than three months at the date
of purchase to be cash equivalents.  Cash equivalents at March 31, 2006
consisted primarily of money market funds.

      Restricted Cash

      Restricted cash is primarily cash which collateralizes both letters
of credit and outstanding performance bonds.



<PAGE>


      Prepaid Expenses and Other Assets

      Prepaid expenses and other assets primarily includes prepaid
insurance and deposits held by third parties.

      Other Current Liabilities and Other Assets

      Other current liabilities and accrued expenses includes legal fees,
warranty reserves, and other miscellaneous accruals.

      Indemnification of Certain Persons

      Under certain circumstances, the Liquidating Trust indemnifies the
Administrator and certain other persons performing services on behalf of
the Liquidating Trust for liability they may incur arising out of the
indemnified persons' activities conducted on behalf of the Liquidating
Trust.  There is no limitation on the maximum potential payments under
these indemnification obligations, and, due to the number and variety of
events and circumstances under which these indemnification obligations
could arise, the Liquidating Trust is not able to estimate such maximum
potential payments.  However, historically the Liquidating Trust has not
made payments in material amounts under such indemnification obligations,
and no amount has been accrued in the accompanying financial statements for
these indemnification obligations of the Liquidating Trust.

RECENT ACCOUNTING PRONOUNCEMENTS

      In March 2005, Financial Accounting Standards Board Interpretation
No. 47, "Accounting for Conditional Asset Retirement Obligations" an
interpretation of SFAS No. 143 was issued to clarify a liability for a
performance of an asset retirement activity should be recorded if the
obligation to perform such activity is unconditional, whether or not the
timing or method of settlement may be conditional on a future event.  The
interpretation is effective for fiscal years ended after December 15, 2005.

The adoption of this interpretation did not have a material impact on the
Trust's financial statements.

TRANSACTIONS WITH AFFILIATES

      The Liquidating Trust, subject to certain limitations, may engage
affiliates of the Administrator for insurance brokerage and certain other
administrative services to be performed in connection with the
administration of the Liquidating Trust and its assets.  The total of such
costs for the three months ended March 31, 2006 was approximately $7,300.
The total of such costs for the three months ended March 2005 was
approximately $6,250.  In addition, the Administrator and its affiliates
are entitled to reimbursements for salaries and salary-related costs
relating to the administration of the Liquidating Trust and the operation
of the Liquidating Trust's properties.  The Liquidating Trust reimbursed
such costs totalling approximately $73,000 and $373,000 for the three
months ended March 31, 2006 and 2005, respectively, including amounts due
for prior periods.

      For the three month periods ended March 31, 2006 and 2005, the
Liquidating Trust reimbursed St. Joe Towns and Resorts, LP, formerly known
as St. Joe/Arvida Company L.P. ("St. Joe T&R") or its affiliates
approximately $7,000 and $69,000, for the services provided to the
Liquidating Trust by St. Joe T&R pursuant to a sub-management agreement for
development and management supervisory and advisory services (and personnel
with respect thereto).

      In January 2005, the General Partner and Associate Limited Partners,
collectively, received cash distributions in the aggregate amount of
$1,122,208.



<PAGE>


COMMITMENTS AND CONTINGENCIES

      As security for performance of certain development obligations, the
Liquidating Trust was contingently liable under performance bonds for
approximately $2,236,000 at March 31, 2006 and December 31, 2005.

      On August 29, 2002, the Partnership entered into an agreement with
St. Joe T&R for the prospective assignment to and assumption by St. Joe T&R
of the Partnership's rights and obligations under the lease for its offices
(approximately 19,100 rentable square feet of space) in Boca Raton,
Florida.  The assignment and assumption of the lease was made effective
January 1, 2004.

      Rental expense of approximately $18,000 and $13,000 was incurred for
the three month periods ended March 31, 2006 and 2005.

      The Partnership was named a defendant in a purported class action
entitled Lakes of the Meadow Village Homes Condominium Nos. One, Two,
Three, Four, Five, Six, Seven, Eight and Nine Maintenance Associations,
Inc., v. Arvida/JMB Partners, L.P. and Walt Disney World Company, Case No.
95-23003-CA-08, filed in the Circuit Court of the Eleventh Judicial Circuit
in and for Miami-Dade County, Florida ("Lakes of the Meadow" litigation).
In the lawsuit, plaintiffs sought unspecified damages, attorneys' fees and
costs, recission of specified releases, and all other relief that
plaintiffs might be entitled to at equity or at law on behalf of the 460
building units they allegedly represented for, among other things, alleged
damages discovered in the course of making Hurricane Andrew repairs.
Plaintiffs alleged that Walt Disney World Company was responsible for
liabilities that might arise in connection with approximately 80% of the
buildings at the Lakes of the Meadow Village Homes and that the Partnership
was potentially liable for the approximately 20% remaining amount of the
buildings.  In the three count amended complaint, plaintiffs alleged breach
of building codes and breach of implied warranties.  The Liquidating Trust
tendered this matter to The Walt Disney Company (n/k/a Disney Enterprises,
Inc., "Disney") pursuant to the Partnership's indemnification rights and
filed a third-party complaint against it pursuant to the Partnership's
rights of contractual indemnity.  The Partnership also answered the amended
complaint and filed a cross-claim against Disney's affiliate, Walt Disney
World Company, for common law indemnity and contribution.  The Partnership
completed settlements in this case with the condominium associations and
their members during the second quarter of 2004.

      The Partnership is informed and believes that a settlement in
principle has been reached in the underlying action between Disney and the
plaintiffs.  The terms of the settlement have not been announced.

      The Partnership continues to pursue claims for indemnity or
contribution against Disney or its affiliates ("Disney cross-defendants")
in connection with the Lakes of the Meadow condominium units that were
constructed in whole or in part prior to September 10, 1987 (the date that
the Partnership acquired the assets of Arvida Corporation from Disney) but
were sold by the Partnership on or after that date.  The Partnership's
claims for indemnity and contribution have been severed for separate
proceedings and trial from the remaining case-in-chief in the Lakes of the
Meadow litigation.  The Disney cross-defendants have answered the cross-
claim denying liability and have filed their own claims for indemnity and
contribution.  The Partnership will be filing its response to the cross-
claim and working toward scheduling this matter.  No discovery cutoff or
trial date has been set for these claims.



<PAGE>


      The Partnership also sought payment or reimbursement of the foregoing
settlement amounts from U.S. Fire and an excess insurance carrier, The Home
Insurance Company, that is in liquidation proceedings.  On December 10,
2004, the Partnership and one of its insurance carriers, U.S. Fire, entered
into an agreement (the "Settlement Agreement") to settle their respective
claims against each other relating to insurance coverage under a policy of
insurance for the period from June 1, 1992 to June 1, 1993 (the "Policy").
The dispute between the Partnership and U.S. Fire concerned whether the
Policy covered third-party claims asserted against the Partnership in the
Lakes of the Meadow matter and claims asserted against the Partnership in
an insurance subrogation lawsuit involving certain homes in the Country
Walk Community (the "Juarez action").  The Partnership settled the claims
asserted against it in the Lakes of the Meadow matter in 2004 for
approximately $6.9 million while the claims asserted in the Juarez action
continue in litigation.

      Pursuant to the terms of the Settlement Agreement in December 2004,
U.S. Fire paid the Partnership the settlement amount and the Partnership
dismissed with prejudice U.S. Fire from the Partnership's Illinois
insurance action seeking, among other things, to hold U.S. Fire liable
under the Policy for claims the Partnership paid relating to the Lakes of
the Meadow Village Homes.  U.S. Fire represented to the Partnership that
upon its payment of the settlement amount, U.S. Fire exhausted the
products/completed operations aggregate limit of coverage under the Policy.

In addition, the Partnership and U.S. Fire released each other for all
past, present and future claims, whether currently known or unknown, that
arise out of or relate in any way to (i) Hurricane Andrew, which struck
Miami-Dade County, Florida on August 24, 1992, and the Policy, and (ii)
insurance coverage under the products/completed operations coverage of the
Policy.  U.S. Fire also released any claim for subrogation that it might
have for amounts it has paid or will pay under the Policy and the
Settlement Agreement. The Settlement Agreement supercedes prior discussions
and understandings, both written and oral, between the parties in regard to
their respective claims arising out of or relating to Hurricane Andrew
under the Policy and the discharge and release of the products/completed
operations aggregate limit of the Policy, including without limitation, all
positions taken by U.S. Fire in respect of its reservations of rights in
regard to such claims and all positions taken by the Partnership in regard
to such claims.  As a result, the settlement clarifies that the Partnership
has no obligation to reimburse U.S. Fire for any amount that U.S. Fire
previously paid for settlements of various lawsuits arising out of or
relating to Hurricane Andrew.  Shortly after the dismissal of U.S. Fire
from the Illinois action, the Partnership dismissed its Illinois action
without prejudice, as to the remaining defendants.

      The Partnership is a defendant in an insurance subrogation matter.
On or about May 10, 1996, a subrogation claim entitled Juarez v. Arvida
Corporation et al., Case No. 96-09372 CA13 was filed in the Circuit Court
of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida.
Plaintiffs filed this suit for the use and benefit of American Reliance
Insurance Company ("American Reliance").  In this suit, plaintiffs seek to
recover damages, pre-and post-judgment interest, costs and any other relief
the court may deem just and proper in connection with $3,200,000 American
Reliance allegedly paid on specified claims at Country Walk in the wake of
Hurricane Andrew.  The Walt Disney Company (n/k/a Disney Enterprises, Inc.,
"Disney") is also a defendant in this suit.  The Partnership is informed
that a settlement has been reached between the Walt Disney Company and the
plaintiff.  The terms of the settlement have not been disclosed.  The
Partnership filed a motion to dismiss this action that has been pending
since 1996.  The Partnership is advised that the amount of this claim
(including prejudgment interest) that allegedly relates to units it sold is
a range of approximately $360,000 to $800,000.  As a result of, among other
things, the settlement agreement with U.S. Fire, the Partnership has
assumed the cost of defense and any obligations created by judgment or
otherwise arising in connection with this matter.  The Partnership believes
that a material loss for the Partnership as a result of this lawsuit is
remote.



<PAGE>


      The Partnership, the General Partner and certain related parties as
well as other unrelated parties have been named defendants in an action
entitled Rothal v. Arvida/JMB Partners Ltd. et al., Case No. 03-10709 CACE
12, filed in the Circuit Court of the 17th Judicial Circuit in and for
Broward County, Florida.  In this suit that was originally filed on or
about June 20, 2003, plaintiffs purport to bring a class action allegedly
arising out of construction defects occurring during the development of
Camellia Island in Weston, which has approximately 150 homes.  On May 9,
2005, plaintiffs filed a nine count second amended complaint seeking
unspecified general damages, special damages, statutory damages,
prejudgment and post-judgment interest, costs, attorneys' fees, and such
other relief as the court may deem just and proper.  Plaintiffs complain,
among other things, that the homes were not adequately built, that the
homes were not built in conformity with the South Florida Building Code and
plans on file with Broward County, Florida, that the roofs were not
properly attached or were inadequate, that the truss systems and
installation thereof were improper, and that the homes suffer from improper
shutter storm protection systems.  The Arvida defendants have filed their
answer to the amended complaint.  The Arvida defendants believe that they
have meritorious defenses and intend to vigorously defend themselves.  Due
to, among other things, the early stage of the litigation, the Partnership
is not able to determine what, if any, loss exposure that it may have for
this matter.  This case has been tendered to one of the Partnership's
insurance carriers, Zurich American Insurance Company (together with its
affiliates collectively, "Zurich"), for defense and indemnity.  Zurich is
providing a defense of this matter under a purported reservation of rights.

The Partnership has also engaged other counsel in connection with this
lawsuit.  The Partnership is unable to determine the ultimate portion of
the expenses, fees and damages, if any, which will be covered by its
insurance.

      The Partnership was named a defendant in a purported class action
entitled Osnovsky, individually and on behalf of others similarly situated,
v. Arvida Company, Arvida/JMB Partners, and Arvida Realty Co., Inc., Case
No. 05015925, filed on November 7, 2005, in the Circuit Court of the
Seventeenth Judicial Circuit in and for Broward County, Florida.  The
Arvida defendants were served on March 1, 2006.  Plaintiffs have filed a
three count class action complaint for alleged violations of state building
code, failure to disclosure known defects in a residential real estate
transaction, and negligence, all in connection with injuries allegedly
sustained to their homes in the Ridges, a homeowners association in Weston
that has about 1,500 units.  Plaintiffs complain of alleged roofing defects
in their homes, among other things.  Plaintiffs seek unspecified damages
and the opportunity to amend to add punitive damages.  The complaint has
been tendered to Arvida's carrier for defense and indemnity.  In response
to the tender, the Partnership received a purported reservation of right
letter from the carrier.  The Arvida defendants believe they have
meritorious defenses and intend to vigorously defend themselves.

      The following three lawsuits in large part allegedly arise out of
landscaping issues at certain subdivisions in the Weston Community.  These
lawsuits are collectively referred to as the "landscape cases."  In
addition to the following landscaping cases, the General Partner has
received letters from other homeowners' associations in the Weston
Community complaining about their landscaping.  These associations have not
filed suit.



<PAGE>


      A case, The Ridges Maintenance Association, Inc. v. Arvida/JMB
Partners, et al., Case No. 03-10189 (05) (the "Ridges Case"), was filed on
or about June 6, 2003 in the Circuit Court of the 17th Judicial Circuit in
and for Broward County, Florida.  The defendants in this action include
Arvida/JMB Partners, Arvida/JMB Managers, Inc., Arvida Management Limited
Partnership, CCL Consultants, Inc. ("CCL"), Bamboo Hammock Nursery, Inc.
("Bamboo Hammock"), and Lagasse Pool Construction, Co. ("Lagasse").
Plaintiff is alleged to be a homeowners' association representing the
owners of approximately 1,500 homes and extensive common areas in the
Ridges subdivision in Weston.  In the seven-count amended complaint that
was filed on September 16, 2005, plaintiff seeks unspecified compensatory
damages, prejudgment interest, court costs and such other and further
relief as the court might deem just and proper.  In Count I, plaintiff
seeks damages from the Arvida defendants for alleged negligent design,
construction and/or maintenance of the landscaping and common elements that
allegedly resulted in defects of the landscaping, sidewalks, irrigation
systems, and community pool.  With respect to the landscaping claims, the
plaintiff alleges that it evaluated the condition of the common areas after
the turnover of the community in January 2000 and discovered numerous
construction, design and maintenance defects and deficiencies including,
but not limited to, improper planting of inferior quality/grade of
landscaping contrary to controlling government codes, shallow planting of
landscaping, landscape planting in inappropriate areas, and the planting of
landscaping that would uproot sidewalks.  In Count II, plaintiff seeks
damages from CCL, the alleged civil engineer for the community, in
connection with the alleged negligent design, construction or maintenance
of the common areas and elements.  In Count III, plaintiff seeks damages
from Bamboo Hammock, the alleged landscape engineer, architect, supplier,
installer and/or designer, in connection with alleged defects in the
landscaping resulting in damage to, among other things, the landscaping and
sidewalks.  In Count IV, plaintiff seeks damages from Lagasse for alleged
defects in the community pool.  In Count V, plaintiff seeks damages from
Arvida/JMB Partners, a general partnership in which the Partnership owns a
99.9% interest, and Arvida/JMB Managers, Inc., the General Partner of the
Partnership, seeking to hold these entities vicariously responsible for the
acts of CCL, Bamboo Hammock, and/or Lagasse.  In Count VI, plaintiff seeks
damages from the Arvida/JMB Partners and Arvida/JMB Managers, Inc. for
various breaches of fiduciary duty.  In this count, plaintiff alleges that
prior to the turnover of the community, these defendants engaged in acts
that amounted to a breach of fiduciary duty to plaintiff in that they,
among other things, (i) allegedly improperly executed an amendment to the
declarations of covenant for their sole benefit and to the financial
detriment of the plaintiff; (ii) allegedly engaged in acts that constituted
a conflict of interest; (iii) allegedly failed to maintain appropriate
care, custody and control over the financial affairs of the homeowners'
association by failing to pay for common expenses; (iv) allegedly
improperly transferred funds by and between plaintiff and a non-party, The
Town Foundation, Inc., which transfers allegedly amounted to a violation of
these defendants' obligations to fund operating deficits and a breach of
fiduciary duty; and (v) allegedly transferred funds by and between various
entities under their common control in violation of Florida statute and
their fiduciary duty to plaintiff.  Plaintiffs voluntarily withdrew Count
VII.  The Arvida defendants filed their answer to the amended complaint on
February 13, 2006, denying substantive liability and raising various
defenses.  The Arvida defendants believe that they have meritorious
defenses and intend to vigorously defend themselves.

      A case entitled The Falls Maintenance Association, Inc. v. Arvida/JMB
Partners, Arvida/JMB Managers, Inc., CCL Consultants, Inc. and Stiles
Corporation f/k/a Stiles Landscape Service Co., Case No. 0302577 (the
"Falls Maintenance Case"), was filed on or about February 10, 2003, in the
17th Judicial Circuit in and for Broward County, Florida.  Plaintiff is
alleged to be the homeowners' association responsible for the maintenance,
repair, and replacement of the common areas within the Falls subdivision in
Weston, which contains approximately 600 homes.  Plaintiff complains that
on turnover of the Falls subdivision, it discovered numerous construction,
design and maintenance defects and deficiencies including, but not limited


<PAGE>


to, the quality/grade of the landscaping, landscaping planted too shallow,
landscaping planted too deep, landscaping planted in narrow swale areas,
landscaping planted in shallow soil areas, poor fertility of road rock
under locations where landscaping is planted and poor maintenance.
Plaintiff has filed a six count complaint with five counts against
Arvida/JMB Partners and Arvida/JMB Managers, Inc. for breach of implied
warranty of merchantability, breach of implied warranty of fitness, breach
of express warranty, fraudulent misrepresentation/concealment, and
negligent design, construction and/or maintenance.  Plaintiff seeks an
unspecified amount of compensatory damages, interest, costs, and such other
and further relief as is just and equitable.  Arvida/JMB Partners and
Arvida/JMB Managers, Inc. have filed an answer to the complaint denying
substantive liability and raising various defenses.  The Arvida defendants
believe that they have meritorious defenses and intend to vigorously defend
themselves.

      On October 22, 2003, a case entitled Weston Lakes Maintenance
Association v. Arvida/JMB Partners and Arvida/JMB Managers, Inc., Case No.
0318490, was filed in the Circuit Court of the Seventeenth Judicial Circuit
in and for Broward County, Florida Civil Division.  In the four-count
complaint, which was served on the Partnership in February 2004, plaintiff,
Weston Lakes Maintenance Association, alleges that defendants negligently
selected and installed inferior landscaping materials in the common areas
and elements of the Weston Lakes subdivision, which contains approximately
570 homes.  Plaintiff alleges that defendants' actions have caused higher
than expected maintenance fees and that the landscaping is causing injury
and damage to sidewalks and roadways that must be repaired or replaced.
Plaintiff alleges that an unspecified large sum of money will be required
to replace the alleged substandard landscaping and that significant expense
for remedial maintenance, repair and replacement of elements throughout the
community will be incurred.  The four-count complaint is for negligent
construction and design of landscaping allegedly based on a violation of a
Broward County ordinance regarding plant materials, common law negligence,
breach of implied warranty of fitness, and breach of implied warranty of
merchantability.  Plaintiff seeks a judgment in an unspecified amount and
type of damages, attorney's fees and such other relief as the court may
deem proper.  Defendants have briefed and argued a motion to dismiss.  The
court has not issued its decision on the motion.  Defendants believe they
have meritorious defenses and intend to vigorously defend themselves.

      Due to, among other things, the early stages of litigation, the
Partnership is not able to determine what, if any, loss exposure that it
may have for the landscape cases, and the accompanying financial statements
do not reflect any accruals related to the landscape cases.  Each of the
landscape cases has been tendered to Zurich for defense and indemnity.  The
Partnership has also engaged other counsel in connection with the landscape
cases.  The Partnership has received from Zurich letters purporting to
reserve its rights in the Ridges and Falls Maintenance Cases.  For this and
other reasons, on September 26, 2005, Arvida/JMB Partners, L.P., Arvida/JMB
Managers, Inc., and Arvida Management L.P. (collectively "Arvida") filed a
complaint for declaratory relief and damages against Zurich American
Insurance Co., individually and as successor to Zurich Insurance Co.
(collectively "Zurich"), Case No. 0514346 in the Circuit Court of the 17th
Judicial Circuit in and for Broward County, Florida.  In this two Count
complaint, Arvida seeks, among other things, a declaration of its rights
under its policies, attorney fees and costs, and such other relief as the
court deems appropriate.  On March 15, 2006, the court dismissed the
complaint with leave to file an amended complaint.  The Partnership is
unable to determine the ultimate portion of the expenses, fees and damages
allegedly relating to the landscaping cases, if any, which will be covered
by its insurance.

      Other than as described above, the Partnership is not subject to any
material legal proceedings, other than ordinary routine litigation
incidental to the business of the Partnership.





<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR
         PLAN OF OPERATION

      Reference is made to the notes to the accompanying financial
statements ("Notes") contained in this report for additional information
concerning the Liquidating Trust.

      This report, including this Management's Discussion and Analysis of
Financial Condition and Results of Operations, contains forward-looking
statements.  Words like "believes," "expects," "anticipates," "likely," and
similar expressions used in this report are intended to identify forward-
looking statements.  These forward-looking statements give the Liquidating
Trust's current estimates or expectations of future events, circumstances
or results, including statements concerning possible future distributions
and the amount of time and money that may be involved in completing the
liquidation, winding up and termination of the Liquidating Trust.  Any
forward-looking statements made in this report are based upon the
Liquidating Trust's understanding of facts and circumstances as they exist
on the date of this report, and therefore such statements speak only as of
that date.  In addition, the forward-looking statements contained in this
report are subject to risks, uncertainties and other factors that may cause
the actual events or circumstances, or the results or performances of the
Liquidating Trust, to be materially different from those estimated or
expected, expressly or implicitly, in the forward-looking statements.  In
particular, but without limitation, the accuracy of statements concerning
possible future distributions to the holders of the beneficial interest
units (the "Unit Holders") or the timing, proceeds or costs associated with
completion of a liquidation, winding up and termination may be adversely
affected by, among other things, various factors discussed below.

OVERVIEW

      Effective September 30, 2005, Arvida/JMB Partners, L.P. (the
"Partnership") completed its liquidation by contributing all of its
remaining assets to ALP Liquidating Trust (the "Liquidating Trust"),
subject to all of the Partnership's obligations and liabilities.  Arvida
Company, an affiliate of the general partner of the Partnership, acts as
Administrator (the "Administrator") of the Liquidating Trust.

      The Liquidating Trust is a statutory trust formed under the laws of
the State of Delaware.  The purpose of the Liquidating Trust is to complete
the liquidation and winding up of the business affairs of the Partnership.
The liquidating, winding up and termination of the Liquidating Trust will
be managed by Arvida Company, as administrator of the Liquidating Trust.
In its capacity as such, the Administrator has the authority to exercise
all of the powers granted to it under the Liquidating Trust Agreement,
including selling or otherwise disposing of the remaining property of the
Liquidating Trust, resolving litigation against the Liquidating Trust or
its predecessor, preparing tax returns for the Liquidating Trust, making
distributions to Unit Holders and retaining advisors to assist it in
carrying out its powers.  Wilmington Trust Company is the Delaware resident
trustee of the Liquidating Trust.  Both the Administrator and the Delaware
resident trustee are entitled to fees for their services and/or
reimbursement for the expenses they incur in connection with their
activities under the Liquidating Trust Agreement.  In addition, each of
them will generally be indemnified for liabilities that arise as a result
of the activities they provide under the Liquidating Trust Agreement unless
such liabilities result from such person's own bad faith, fraud, willful
misconduct or gross negligence.  The Liquidating Trust will generally
continue in existence until all claims, debts, liabilities and obligations
of the Liquidating Trust and the Partnership have been paid or otherwise
discharged.



<PAGE>


      In connection with its formation, the Liquidating Trust issued a
total of 448,794 beneficial interest units to the partners of the
Partnership.  In the liquidation, each partner in the Partnership received
a beneficial interest in the Liquidating Trust for each interest the
partner held in the Partnership.  As a result, a partner's percentage
interest in the Liquidating Trust remains the same as that person's
percentage interest was in the Partnership immediately prior to its
liquidation.

      Upon completion of the liquidation of the Partnership, pursuant to
Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the Liquidating Trust elected to become the successor
issuer to the Partnership for reporting purposes under the Exchange Act and
elect to report under the Exchange Act effective September 30, 2005.  The
Liquidating Trust has assumed all reports filed by the Partnership prior to
liquidation of the Partnership under the Exchange Act.

CRITICAL ACCOUNTING ESTIMATES

      Upon the formation of the liquidating trust, the Liquidating Trust
adopted the liquidation basis of accounting effective September 30, 2005.
The preparation of financial statements using the liquidation basis of
accounting requires us to make assumptions, judgments and estimates that
can have a significant impact on our reported net assets in liquidation.
Estimated costs to be incurred during liquidation includes an estimate of
legal fees and costs of litigation, insurance costs and other
administrative items through June 30, 2007.  Reference is made to
"Commitments and Contingencies" for a discussion of pending or threatened
litigation.  The Liquidating Trust is unable to reasonably estimate the
outcome of its pending litigation or threatened litigation and is also
unable to reasonably predict the estimated timetable to reach any such
outcome.  Estimated costs have been included through the earliest
reasonable date that pending litigation could be resolved prior to trial.
While the pending litigation may not be resolved prior to trial, and may
require a period of time significantly beyond June 30, 2007, no one point
in time provides for a better estimate than any other point in time.
Actual results could differ materially from these estimates under different
assumptions or conditions.  On a regular basis an evaluation will be made
of assumptions, judgments and estimates and changes will be made, if deemed
appropriate.

      We believe that the assumptions, judgments and estimates involved in
the accounting for estimated costs to be incurred during liquidation have
the greatest potential impact on our financial statements, and therefore,
we consider these estimates to be our critical accounting policies.

LIQUIDITY AND CAPITAL RESOURCES

      As of March 31, 2006, net assets in liquidation totaled approximately
$22,678,000, consisting of approximately $29,333,000 in cash and cash
equivalents and approximately $7,451,000 in total liabilities.  The
Liquidating Trust expects to use its capital resources to execute the
liquidation and dissolution, and with remaining funds, if any, to be used
to make liquidating distributions to Unit Holders.

      Until the ultimate completion of the liquidation, winding up and
termination of the Liquidating Trust, it is anticipated that the
Liquidating Trust will retain substantially all of its funds in reserve to
provide for the payment of, the defense against, or other satisfaction or
resolution of obligations, liabilities (including contingent liabilities)
and current and possible future claims, including those for possible
construction repairs, homeowner warranty claims, completion of work for
certain homeowner associations and master associations and pending and
possible future litigation and environmental matters.  It is not possible
at this time to estimate the amount of time or money that it will take to


<PAGE>


effect the Liquidating Trust's liquidation, winding up and termination.
That portion, if any, of the funds held in reserve that are not ultimately
used to pay, defend or otherwise resolve or satisfy obligations,
liabilities or claims are currently anticipated to be distributed to the
Unit Holders in the Liquidating Trust at a later date and may not be
distributed until the completion of the liquidation.

      Various factors may affect the timing of completing the liquidation,
winding up and termination of the Liquidating Trust and the amount of
liquidating distributions of funds, if any, out of those retained in
reserve.  These factors include the time and expense to resolve all
obligations, liabilities and claims, including contingent liabilities and
claims that are not yet asserted but may be made in the future.  Among
other things, additional or unanticipated remedial construction or
development costs, contingencies (including without limitation,
contingencies relating to potential homeowner warranty or other homeowner
or homeowners' association claims), delays in resolving pending or
threatened litigation or other asserted claims, delays in satisfying
conditions or obligations under permits obtained by the Partnership,
currently unasserted claims that arise in the future and other factors
could result in a reduction in future distributions to Unit Holders in the
Liquidating Trust and could extend the time, and significantly increase the
cost, to complete the liquidation, winding up and termination of the
Liquidating Trust.  While the Liquidating Trust intends to defend against
asserted claims where appropriate, it is currently not possible to identify
or assess any defenses or counterclaims that may be available to the
Liquidating Trust, or the magnitude of any claims that may be asserted.

CHANGES IN NET ASSETS IN LIQUIDATION

      The following table presents financial data under the liquidation
basis of accounting for the three months ended March 31, 2006.

Net assets in liquidation on December 31, 2005. . . . . .   $22,330,527
    Proceeds and revenues . . . . . . . . . . . . . . . .       436,435
    Adjustment to estimated costs to be incurred
      through June 30, 2007 . . . . . . . . . . . . . . .       321,432
    Costs incurred during liquidation period. . . . . . .      (409,990)
                                                            -----------
Net assets in liquidation at March 31, 2006 . . . . . . .   $22,678,404
                                                            ===========

      In connection with the adoption of the liquidation basis of
accounting on September 30, 2005, we accrued estimated costs to be incurred
during liquidation.  Included in estimated costs to be incurred during
liquidation are future expenditures that, prior to the adoption of the
liquidation basis of accounting, would have been included in general and
administrative expenses in future periods.  Future adjustments in estimated
costs to be incurred in liquidation will be reflected as changes in net
assets in liquidation.  Prior to the adoption of the plan, selling, general
and administrative expenses included all marketing costs, with the
exception of those costs capitalized in conjunction with the construction
of housing units, as well as project and general administrative costs.
These expenses were net of the marketing fees received from third party
builders.



<PAGE>


RESULTS OF OPERATIONS (GOING CONCERN BASIS)

      Other operating revenues for the three months ended March 31, 2005
were generated from the sale of a small parcel of land in Boca Raton,
Florida, the carrying value of which was $0.

      Selling, general and administrative expenses for the three months
ended March 31, 2005 consisted primarily of legal fees, investor-related
expenses and insurance.

      Interest income for the three months ended March 31, 2005 were
generated primarily from the purchase of debt securities and money market
funds.


      ITEM 4. CONTROLS AND PROCEDURES

      Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-15 of
the Securities Exchange Act of 1934 (the "Exchange Act") promulgated
thereunder, the principal executive officer and the principal financial
officer of the Liquidating Trust have evaluated the effectiveness of the
Liquidating Trust's disclosure controls and procedures as of the end of the
period covered by this report.  Based on such evaluation, the principal
executive officer and the principal financial officer have concluded that
the Liquidating Trust's disclosure controls and procedures were effective
as of the end of the period covered by this report to ensure that
information required to be disclosed in this report was recorded,
processed, summarized and reported within the time period specified in the
applicable rules and form of the Securities and Exchange Commission for
this report.


PART II - OTHER INFORMATION


      ITEM 1.  LEGAL PROCEEDINGS

      See Item 1 of the Financial Statements included in Part I of this
report.


      ITEM 6.  EXHIBITS

      4.1.  Liquidating Trust Agreement of ALP Liquidating Trust,
            dated as of September 30, 2005, by and among, Arvida/JMB
            Partners, L.P., Arvida Company, as Administrator, and
            Wilmington Trust Company, as Resident Trustee.

      31.1. Certification of the Principal Executive Officer pursuant
            to Rule 13a-14(a)/15d-14(a) of the Securities Exchange
            Act of 1934, as amended, is filed herewith.

      31.2. Certification of the Principal Financial Officer pursuant
            to Rule 13a-14(a)/15d-14(a) of the Securities Exchange
            Act of 1934, as amended, is filed herewith.

      32.   Certifications of Chief Executive Officer and Chief
            Financial Officer pursuant to 18 U.S.C. Section 1350, as
            adopted pursuant to Section 906 of the Sarbanes-Oxley Act
            of 2002 are furnished herewith.









<PAGE>


                                SIGNATURES


      Pursuant to the requirements of the Securities Exchange Act of 1934,
the Partnership has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.


                  ALP LIQUIDATING TRUST

                  BY:   Arvida Company
                        as Administrator




                        By:   GAILEN J. HULL
                              Gailen J. Hull, Vice President
                        Date: May 15, 2006


     Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed on behalf of ALP Liquidating Trust by the
following person in the capacities and on the date indicated.




                        By:   GAILEN J. HULL
                              Gailen J. Hull, Chief Financial Officer
                              and Principal Accounting Officer
                        Date: May 15, 2006