Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Life Partners Holdings Objections Filed

0
0

Multiple parties – including Black Diamond Lifeplan Fund, Evergreen Lifeplan Fund, Pillar Life Settlement Fund I, certain arbitration objectors and Transparency Alliance – filed with the U.S. Bankruptcy separate objections to Life Partners Holdings’ Third Amended Joint Plan of Reorganization.

Transparency Alliance asserts, “The Joint Plan should not be confirmed because there is a safer and better Plan offered by Transparency. The Joint Plan is simply too risky for investors, to the point of making it infeasible. Indeed, the Position Holder Trust contemplated under the Joint Plan will likely lead to further insolvency because it is supported by grossly inadequate financing. By contrast, the Transparency Plan is appropriately conservative with the investors’ assets; Transparency uses realistic financial projections and helps to ensure long-term solvency by making financing available for the duration of its Plan – not just the first three years of it. Further, the Joint Plan does not follow best practices in its proposed management and servicing of the underlying fractional interests (i.e., over 22,000 fractional interests in around 3,400 policies).”

The objection continues, “The Joint Plan also pays mere lip service to honoring the election of investors who choose to retain their fractional interests. The Joint Plan punishes these continuing interest holders by, among other things, forcibly pooling 5% of their interests, charging them a high servicing fee that has no relation to when a policy matures, sharply penalizing investors in case of default (a 20% reduction in their interest), and withholding their maturities in case they are needed to fund the ongoing operations of the Joint Plan – a near certainty under any realistic set of projections. By contrast, the Transparency Plan honors the election of continuing interest holders by giving those investors 100% of their fractional interests, charging them a low yearly servicing fee that stops when their individual policy matures, only charging them 10% if they default into the pool, distributing their maturities promptly, and never withholding their maturities for use as a potential lending base. Finally, the Transparency Plan provides investors with absolutely best-in-class management and servicing that the Joint Plan simply cannot match.”

Read more LPHI bankruptcy news.

The post Life Partners Holdings Objections Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images