The U.S. Bankruptcy Court confirmed Life Partners Holdings’ Revised Third Amended Joint Chapter 11 Plan of Reorganization, proposed by Chapter 11 trustee H. Thomas Moran II and the Company’s official committee of unsecured creditors.
A release issued by Moran notes that this order, “…follows a contested confirmation hearing that spanned five weeks and clears the way for implementation of the plan and the creation of two new entities, Life Partners Position Holder Trust and Life Partners Creditors’ Trust.”
The Plan will be implemented in collaboration with the official creditors’ committee and Vida Capital, which has agreed to act as the policy servicer and investor account administrator. Vida Capital has also agreed to provide exit financing so that the Position Holder Trust can emerge from Chapter 11 protection and maturity funds can be distributed to fractional holders as soon as possible. The Position Holder Trust will oversee the liquidation of the policy portfolio and distribution of the net proceeds to investors. The Creditors’ Trust will pursue litigation, including claims previously brought against insiders at Life Partners, certain individuals and entities who received monies from the fraudulent enterprise and others against whom the investors or the company may have a right to recover.
The Plan provides recoveries from such litigation will be distributed to investors and other creditors. This life insurance provider filed for Chapter 11 protection on January 20, 2015, listing $30 million in pre-petition assets.
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