Vida Capital filed with the U.S. Bankruptcy Court a motion to establish formal procedures for a competing plan process for the Life Partners Holdings case.
The motion explains, “After several ‘preliminary’ hearings on the Plan Proponents’ plan and disclosure statement, exclusivity lapsed on March 4, 2016, thereby opening the plan process to any other party in interest. On March 24, 2016, the Plan Proponents filed their Second Amended Joint Plan and accompanying disclosure statement….Given that there appear to be over 20,000 parties in interest in this case, Vida believes that it is in the best interests of the Debtors’ estates, creditors and other parties in interest to formalize procedures for a competing plan process which will have at least three and potentially more plans….Vida respectfully submits that the Court should order the Trustee to file a ‘General Disclosure Statement’ that is not specific to any particular chapter 11 plan and the terms of which are agreed upon by the competing plan proponents. Each proponent will then file and seek approval of its own disclosure document that is specific to its own plan.”
Vida Capital also filed with the Court a Chapter 11 Plan, which states, “Holders of SEC Claim in Class 1C, shall be entitled to receive its Pro Rata share of (i) Net Cash plus (ii) all Cash thereafter received by the Litigation Trust from the liquidation of the Causes of Action and Excluded Assets, or otherwise received pursuant to the terms of the Plan and the Trust Agreement….Each holder of an Allowed General Unsecured Claim shall receive its Pro Rata share of (i) Net Cash plus (ii) all Cash thereafter received by the Litigation Trust from the liquidation of Causes of Action, Contributed Causes of Action and Excluded Assets, or otherwise received pursuant to the terms of the Plan and the Trust Agreement. The Litigation Trustee shall make the Initial Distribution of Net Cash to holders of Allowed General Unsecured Claims on the later of (a) the Effective Date or (b) fifteen (15) days after a General Unsecured Claim become Allowed, and shall thereafter make additional distributions in accordance with the provisions of the Plan….Holders of Equity Interests shall neither receive nor retain any property under the Plan on account of their Equity Interests.”
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