A reorganization under Chapter 11 allows a business to reorganize without shutting down, by providing protection from creditors and other obligations.
Generally, in chapter 11 bankruptcy cases, the Debtors or other Plan Proponents, will propose a “plan” that will classify claims against the Debtors, specify the treatment for each class of claims (including the proposed payment of claims), and describe how the debtor will carry out the terms of the proposed Plan.
A disclosure statement provides the background and information needed for a creditor to make an educated decision on whether to vote to accept or reject the chapter 11 plan.
The solicitation process allows creditors within the “voting classes” to review the proposed Plan and vote whether to accept or reject the Plan’s terms. After the voting is completed, if the Plan receives the required votes in favor of the plan, the Plan is submitted to the Bankruptcy Court for approval. Once the Bankruptcy Court approves the Plan, it becomes binding on all creditors.
If you have additional questions regarding the Chapter 11 Plans or the solicitation process, please consult with your own attorney.
Yes. To provide you with additional information about the Transparency Plan, Transparency will be conducting in-person meetings and webinars in a number of cities on a number of dates. Please check the solicitation letter that you should have already received, or you can go to www.transparencyalliance.net for the most recent schedule. Please make sure to sign if you plan on attending.
The exact locations and times of these events will be available on the Transparency Alliance website before the event. All locations, dates and times are subject to change, so please check the website before your session. Additional webinars may be scheduled and details will be available on the Transparency Alliance website.
If you would like to participate either in person or by webinar, please call (888) 365-3611 or (330) 333-7266 so that we can reserve a spot for you. Registration is mandatory.
Currently there are two proposed plans of reorganization for Life Partners—one filed by the Chapter 11 Trustee and Creditors’ Committee and another, more favorable plan, filed by Transparency Alliance LLC.
The Transparency Alliance plan is formally known as the Creditors’ Third Amended Plan of Reorganization of Life Partners Holdings, Inc., et al. and informally known as the “Transparency Plan.” You can find the Transparency Plan on the Court Docket as item number 2671 filed on July 11, 2016.
Yes, there are two solicitations currently in process.
On June 29, 2016, the Bankruptcy Court entered an order approving the solicitation of the Trustee’s Plan and on July 14, 2016, the Bankruptcy Court entered an order approving the solicitation of the Transparency Plan.
The Trustee commenced solicitation on the Trustee Plan on July 14, 2016, while Transparency commenced solicitation on the Transparency Plan on July 22, 2016.
As a result you may have received (or will receive) two sets of solicitation materials including two different ballots.
You are receiving plans, disclosure statements, ballots, and notices relating to both the Chapter 11 Trustee’s Plan as well as the Transparency Plan. Some of these documents are lengthy. Both the Chapter 11 Trustee and Creditors’ Committee and Transparency are obligated to send you these materials.
Because Transparency believes its plan provides considerably better terms and recoveries than the Chapter 11 Trustee Plan, we encourage you to focus your attention on reviewing and voting in favor of the Transparency Plan. We also encourage you to vote against the Chapter 11 Trustee Plan.
Please call the Trustee’s Ballot Agent, Epiq, at (866) 841-7869 (toll free) or (503) 597-5539. You can also email them at LPVOTE@epiqsystems.com.
Please call the Trustee’s Ballot Agent, Epiq, at (866) 841-7869 (toll free) or (503) 597-5539. You can also email them at LPVOTE@epiqsystems.com.
The Voting Deadline on the Transparency Plan is 5:00 PM Central Time on August 22, 2016. You must submit your ballot consistent with the Court order so that it is received by Transparency’s balloting agent (Prime Clerk) no later than 5:00 PM Central time on August 22, 2016.
You must submit your ballot on the Transparency Plan to the following address:
Life Partners Ballot/Election Processing Center,
c/o Prime Clerk LLC,
830 3rd Avenue, 9th Floor
New York, New York 10022
No. The Transparency Disclosure Statement is not a duplicate of the Trustee Disclosure Statement, and the Transparency Plan is not a duplicate of the Trustee Plan. The Transparency Plan is in competition with the Trustee Plan for your support.
Even if you have already cast a vote either for or against the Trustee Plan, you may also vote to support the Transparency Plan. Ultimately, however, the Court will confirm only one of the Plans.
While many of the provisions in the Transparency Plan and the Trustee Plan may appear similar, there are substantial, material differences between the two that requires your careful consideration. These differences may have a substantial impact on the treatment of (and recovery on) your claim.
Transparency believes that the Transparency Plan provides superior prospects for recovery for holders of claims and encourages you to vote for (or to accept) the Transparency Plan and vote against (or to reject) the Trustee Plan.
For example:
No. While voting in favor (or to “accept”) the Transparency Plan is an important step, you should also vote against (or to “reject”) the Trustee Plan.
If you do not vote to reject the Trustee Plan, you risk the Court confirming the Trustee Plan and being bound to unfavorable terms.
Transparency Alliance (often referred to as the “Plan Proponent”) is not a Debtor and not affiliated with the Debtors. Transparency is a creditor of Life Partners and has a claim against Life Partners just like you.
Transparency is an affiliate of BroadRiver Asset Management, L.P.—a leader in the niche, highly-complex industry of life settlement investments.
This is an important fact because Transparency and BroadRiver brought and will continue to bring all their industry expertise to bear in crafting and implementing the sound restructuring plan embodied in the Transparency Plan. Like all of the Debtors’ creditors, Transparency wants to see favorable recoveries for those people and entities adversely affected by Life Partners’ dealings.
BroadRiver is registered with the SEC as an Investment Adviser and has robust asset management systems, compliance controls, risk management, and operational depth in life settlement investment management. BroadRiver’s principals pioneered the modernization of the life settlement space through the establishment of best practices for brokers and providers and in the field of consumers protections, contractual standard, institutional-level analytics, and actuarial research.
You may be interested to learn that among other accomplishments, BroadRiver’s team has (i) invested more than $700 million of capital in life settlements; (ii) analyzed over 50,000 policies with over $80 billion in face value (including distressed portfolios); (iii) built finely-tuned portfolios for institutional investors, stressing realistic mortality assumptions and steady cash flow; and (iv) designed robust proprietary information technology platforms for analysis and management of life settlements.
The Transparency Plan will utilize Transparency’s and BroadRiver’s extensive expertise to maximize the value of the Policies and provide the Fractional Interest Holders with returns that are superior to the returns being offered by alternative scenarios.
See 2.13
Transparency and BroadRiver are offering their sophisticated expertise to maximize the value of the Policies that serve as the source of funds to pay the Debtors’ creditors. Transparency and BroadRiver will conduct their work with the assistance of independent, third-party servicers and under the guidance of an independent Advisory Board.
Moreover, the Transparency and BroadRiver are making a significant financial contribution towards the viability of the Transparency Plan including:
The Transparency Plan contemplates the installation of an independent, third-party advisory board consisting of five members with relevant industry expertise that will play a critical role in the implementation of the Transparency Plan. The biographies of these experts can be found in the Transparency Disclosure Statement.
This independent oversight (and the checks and balances provided by this oversight) is an additional reason to support the Transparency Plan.
Yes, Vida Capital, Inc. submitted a “third” proposed plan on April 5, 2015, but later withdrew its plan after it struck a lucrative deal with the Trustee to become the servicer under the Trustee’s Plan.
Now, there are only two proposed plans—Transparency’s Plan and the Trustee’s Plan.
The Transparency Plan creates three separate “Trusts” from which creditors get paid: (i) the Policy Recovery Trust, (ii) the Position Holder Trust, and (iii) the Creditors’ Trust.
The Transparency Plan also provides individual investors with choices regarding how they want to be treated.
The Policy Recovery Trust will come into existence on the Effective Date of the Plan and will manage the life insurance policies held by the Debtors. When the policies mature, the Policy Recovery Trustee will distribute the maturities from the policies to the investors in accordance with section 5.06 of the Transparency Plan.
An affiliate of Transparency will serve as the Policy Recovery Trustee.
The Position Holder Trust will come into existence on the Effective Date and will receive certain proceeds from the Policy Recovery Trust. The Position Holder Trustee will then distribute these proceeds to “Unit Holders”—those investors who pool their investments by making the “Position Holder Trust Election”.
The Position Holder Trust offers substantial benefits to investors by “pooling” their investments and diversifying their prospects for recovery. Investors who choose to pool will tie their recoveries to the performance of all of the policies in the pool, instead of only one. Plus, investors who pool their investments will not have to pay premiums and expenses on these policies after the effective date of the Transparency Plan. All of those costs will be deducted from maturities – no more out of pocket payments.
An affiliate of Transparency will serve as the Position Holder Trustee and manage the Position Holder Trust in accordance with the Position Holder Trust Agreement.
The Creditors’ Trust will come into existence on the Effective Date and will be vested with the Debtors’ “Causes of Action”—basically lawsuits that the Debtors can bring to recover certain assets. The Creditors’ Trust will prosecute these Causes of Action. If the Creditors’ Trust prevails and is awarded recoveries, it will distribute these recoveries to holders of General Unsecured Claims and Fractional Interest Holders who exercise the “Rescission Election”. If these lawsuits don’t generate at least $10 million in proceeds, the Creditor’s Trust will receive up to $10 million to distribute to creditors.
The Creditors’ Trust will be managed by the Creditors’ Trustee in accordance with the Creditors’ Trust Agreement.
The Creditors’ Trustee will be Michael A. McConnell, a former U.S. Bankruptcy Judge for the Northern District of Texas. Mr. McConnell is not affiliated with Transparency.
A Fractional Interest Holder is essentially an investor. Technically, it is a holder of an interest in one of the life insurance policies or the holder of a promissory note or similar obligation purchased through a retirement account and secured by Fractional Interests. The latter is referred to as an “IRA Holder”.
A Fractional Interest means an interest in a life insurance policy or in the death benefits payable thereunder.
A Policy means a life insurance policy (whether termed a “life settlement”, a “viatical” or otherwise) in which any of the Debtors hold an interest of any kind or nature, or in which the Debtors sold an interest to investors in the course of their business.
The Transparency Plan provides Fractional Interest Holders with the freedom to elect from various recovery options. The options vary depending on whether a Fractional Interest Holder directly purchased Fractional Interests or indirectly purchased Fractional Interests through an individual retirement account (“IRA Holders”).
Regardless of the option selected, the recoveries received by the Fractional Interest Holders will be in full and final satisfaction, settlement, release, and discharge of the Claims asserted by the Fractional Interest Holders against the Debtors’ Estates.
In general, investors have three options.
You are encouraged to vote to accept the Transparency Plan, because it provides the most favorable recoveries to creditors; however, if you do not vote and the Court confirms the Transparency Plan, you will still be bound by its terms.
Most importantly, by not voting to accept the Transparency Plan, you run the risk of the Court confirming the Trustee Plan and being bound by those terms.
No. Pursuant to the Transparency Plan, Class A1 is unimpaired and deemed to accept the Transparency Plan. Therefore, you are not entitled to vote.
If the Court confirms the Transparency Plan and your Claim is allowed, you will receive, at the Creditors’ Trustee’s option, either (i) payment full in cash, (ii) delivery of your collateral, (iii) reinstatement of your claim, or (iv) such other treatment that renders your claim unimpaired.
Please see section 3.06 of the Transparency Plan for further detail.
Yes, you are entitled to cast a ballot on the Transparency Plan. For your vote to count, you must complete, execute, and deliver your Transparency Plan ballot to the Balloting Agent (Prime Clerk) so that your ballot is received by the Balloting Agent by 5:00 PM Central Time on August 22, 2016.
If the Court confirms the Transparency Plan and your Claim is allowed, you will receive, a Creditors’ Trust Interest up to the Allowed amount of your claim as described in section 7.06 of the Transparency Plan
Please see section 3.06 of the Transparency Plan for further detail.
Yes, you are entitled to cast a ballot on the Transparency Plan. Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
No. Pursuant to the Transparency Plan, Class B1 is unimpaired and deemed to accept the Transparency Plan. Therefore, you are not entitled to vote.
If the Court confirms the Transparency Plan and your Claim is allowed, you will receive, at the Creditors’ Trustee’s option, either (i) payment full in cash, (ii) delivery of your collateral, (iii) reinstatement of your claim, or (iv) such other treatment that renders your claim unimpaired.
Please see section 3.07 of the Transparency Plan for further detail.
The classification of your claim depends upon (i) whether you hold your Fractional Interest directly or indirectly through an IRA and (ii) whether you are an “Ownership Settlement Subclass Member” and “Rescission Settlement Subclass Member” or only an “Ownership Settlement Subclass Member”.
An Ownership Settlement Subclass Member is a person who belongs to the subclass of investors proposed to be certified for settlement purposes under the Class Action Settlement Agreement. We suggest you review the definition of this term as it is set forth in the Transparency Plan.
A Rescission Settlement Subclass Member is a person who belongs to the subclass of investors proposed to be certified for settlement purposes under the Class Action Settlement Agreement. We suggest you review the definition of this term as it is set forth in the Transparency Plan.
Yes, you fall within Class B2 and are entitled to cast a ballot on the Transparency Plan. Please be advised that for your vote to count, you must complete, execute, and deliver your Transparency Plan ballot to the Balloting Agent so that your ballot is received by the Balloting Agent (Prime Clerk) by 5:00 PM Central Time on August 22, 2016.
You fall within Class B2, and the Transparency Plan provides you with three options for how you may receive your recovery on account of your Fractional Interest(s).
First Option
You can become a “Continuing Interest Holder” by exchanging your Fractional Interests for a “Certificate of Continuing Interests”.
In general terms, the Certificate of Continuing Interests allows you to keep your individual investment in whatever policy you invested in prior to the bankruptcy. If you exercise that option, you will have to continue to pay premiums and servicing costs for your policy until your policy matures.
Please see the Plan for more detail.
Second Option
Alternatively, you can make the “Position Holder Trust Election”, which will “pool” your Fractional Interests with other policies in the in the Position Holder Trust.
In exchange, you will receive “units” in the Position Holder Trust, which will entitle you to regular distributions from the Trust as polices in the Trust mature. These distributions will be made quarterly (four times a year).
The number of Units you will receive in exchange for your Fractional Interests will be calculated in accordance with section 6.03 of the Plan. You will not have to pay premiums and servicing costs out of pocket – all of that will be paid by the pool.
Some investors may want to hold onto their individual investments because they have a large, diversified portfolio of interests already, or because they simply are simply maintaining their specific positions.
For most investors, however, Transparency strongly recommends that you pool your interest by making the “Position Holder Trust Election” on your ballot. The Position Holder Trust offers substantial benefits to Fractional Interest Holders who elect to become Unit Holders.
First, it will “pool” a large number of policies together. This exposes you to less risk because nor recovery will not be tied to the performance of one particular Policy. Instead, they will be tied to the overall performance of all of the Policies in the Position Holder Trust.
Second, by making the Position Holder Trust Election, you won’t have to pay premiums and expense out of pocket after the Plan goes effective. The Position Holder Trust will receive the benefits of the Exit Financing Facility, which will cover these expenses.
Please see the Plan for more detail.
Third Option
You may make the “Rescission Election”.
By exercising the Rescission Election, you may elect to rescind the transaction pursuant to which you acquired rights to and/or interests in the Fractional Interests and rescind the related Investment Contract. In doing so, you will be deemed to have irrevocably assigned, transferred, and abandoned your Fractional Interests.
In exchange, you will receive a Creditors’ Trust Interest calculated as provide in section 7.06 of the Plan. The Creditors’ Trust Interest will allow you to receive a share of potential recoveries in the Causes of Action pursued by the Creditors’ Trustee.
You fall within Class B2A, and the Transparency Plan provides you with two options for how you may receive your recovery on account of your Fractional Interest(s).
First Option
You can become a “Continuing Interest Holder” by exchanging your Fractional Interests for a “Certificate of Continuing Interests”.
In general terms, the Certificate of Continuing Interests allows you to keep your individual investment in whatever policy you invested in prior to the bankruptcy. If you exercise that option, you will have to continue to pay premiums and servicing costs for your policy until your policy matures.
Please see the Plan for more detail.
Second Option
Alternatively, you can make the “Position Holder Trust Election”, which will “pool” your Fractional Interests with other policies in the in the Position Holder Trust.
In exchange, you will receive “units” in the Position Holder Trust, which will entitle you to regular distributions from the Trust as polices in the Trust mature. These distributions will be made quarterly (four times a year).
The number of Units you will receive in exchange for your Fractional Interests will be calculated in accordance with section 6.03 of the Plan. You will not have to pay premiums and servicing costs out of pocket – all of that will be paid by the pool.
Some investors may want to hold onto their individual investments because they have a large, diversified portfolio of interests already, or because they simply are simply maintaining their specific positions.
For most investors, however, Transparency strongly recommends that you pool your interest by making the “Position Holder Trust Election” on your ballot. The Position Holder Trust offers substantial benefits to Fractional Interest Holders who elect to become Unit Holders.
First, it will “pool” a large number of policies together. This exposes you to less risk because nor recovery will not be tied to the performance of one particular Policy. Instead, they will be tied to the overall performance of all of the Policies in the Position Holder Trust.
Second, by making the Position Holder Trust Election, you won’t have to pay premiums and expense out of pocket after the Plan goes effective. The Position Holder Trust will receive the benefits of the Exit Financing Facility, which will cover these expenses.
Please see the Plan for more details.
No. Elections can be made on a Fractional Interest-by-Fractional Interest basis.
Some investors may want to hold onto their individual investments because they have a large, diversified portfolio of interests already, or because they simply are simply maintaining their specific positions.
For most investors, however, Transparency strongly recommends that you pool your interest by making the “Position Holder Trust Election” on your ballot. The Position Holder Trust offers substantial benefits to Fractional Interest Holders who elect to become Unit Holders.
First, it will “pool” a large number of policies together. This exposes you to less risk because nor recovery will not be tied to the performance of one particular Policy. Instead, they will be tied to the overall performance of all of the Policies in the Position Holder Trust.
Second, by making the Position Holder Trust Election, you won’t have to pay premiums and expense out of pocket after the Plan goes effective. The Position Holder Trust will receive the benefits of the Exit Financing Facility, which will cover these expenses.
Yes, you fall within Class B3 and are entitled to cast a ballot on the Transparency Plan. Please be advised that for your vote to count, you must complete, execute, and deliver your Transparency Plan ballot to the Balloting Agent (Prime Clerk) so that your ballot is received by the Balloting Agent by 5:00 PM Central Time on August 22, 2016.
You fall within Class B3, and the Transparency Plan provides you with four possible options to receive your recovery on account of your Prepetition IRA Note.
First Option
You can become a “Continuing Interest Holder” by exchanging your Prepetition IRA Note for a “Certificate of Continuing Interest”.
In general terms, the Certificate of Continuing Interests allows you to keep your individual investment in whatever policy you invested in prior to the bankruptcy. If you exercise that option, you will have to continue to pay premiums and servicing costs for your policy until your policy matures.
Please see the Plan for more detail.
Second Option
Alternatively, you can make the “Position Holder Trust Election”, which will “pool” your Fractional Interests with other policies in the in the Position Holder Trust.
In exchange, you will receive “units” in the Position Holder Trust, which will entitle you to regular distributions from the Trust as polices in the Trust mature. These distributions will be made quarterly (four times a year).
The number of Units you will receive in exchange for your Fractional Interests will be calculated in accordance with section 6.03 of the Plan. You will not have to pay premiums and servicing costs out of pocket – all of that will be paid by the pool.
Transparency strongly recommends that you choose this option because your chances of recovery will no longer be tied to one policy, and you won’t have to pay any more money out of pocket.
Please see the Plan for more detail.
Third Option
An IRA Holder may choose to exchange its Prepetition IRA Note for a Class B3 Note. The principal amount of a Class B3 Note will equal the aggregate of the Fractional Death Benefits due under your Prepetition IRA Note.
Like with the “Continuing Interest Holder” Election, if you choose the “Note Election,” your interest in whatever policy you invested in prior to the bankruptcy. If you exercise that option, you will have to continue to pay premiums and servicing costs for your policy until your policy matures.
As described in greater detail in the Transparency Disclosure Statement, there are potentially severe tax consequences associated with electing to receive a Class B3 Note. If, at or before the Confirmation Hearing, the Bankruptcy Court determines that the Class B3 Notes may not be issued pursuant to the Plan, then any IRA Holder who made this election to receive a Class B3 Note will be deemed to have made a Position Holder Trust Election.
Please see the Transparency Plan for more detail.
Fourth Option
You may make the “Rescission Election”.
By exercising the Rescission Election, you may elect to rescind the transaction pursuant to which you acquired rights to and/or interests in the Fractional Interests and rescind the related Investment Contract. In doing so, you will be deemed to have irrevocably assigned, transferred, and abandoned your Fractional Interests.
In exchange, you will receive a Creditors’ Trust Interest calculated as provide in section 7.06 of the Plan. The Creditors’ Trust Interest will allow you to receive a share of potential recoveries in the Causes of Action pursued by the Creditors’ Trustee
Yes, you fall within Class B3A are entitled to cast a ballot on the Transparency Plan. Please be advised that for your vote to count, you must complete, execute, and deliver your Transparency Plan ballot to the Balloting Agent (Prime Clerk) so that your ballot is received by the Balloting Agent by 5:00 PM Central Time on August 22, 2016.
You fall within Class B3A, and the Transparency Plan provides you with three possible options to receive your recovery on account of your Prepetition IRA Note.
First Option
You can become a “Continuing Interest Holder” by exchanging your Prepetition IRA Note for a “Certificate of Continuing Interest”.
In general terms, the Certificate of Continuing Interests allows you to keep your individual investment in whatever policy you invested in prior to the bankruptcy. If you exercise that option, you will have to continue to pay premiums and servicing costs for your policy until your policy matures.
Please see the Plan for more detail.
Second Option
Alternatively, you can make the “Position Holder Trust Election” and exchange your Prepetition IRA Notes for Units in Position Holder Trust. This allows you to “pool” your Fractional Interests with other policies in the in the Position Holder Trust.
In exchange, you will receive “units” in the Position Holder Trust, which will entitle you to regular distributions from the Trust as polices in the Trust mature. These distributions will be made quarterly (four times a year).
The number of Units you will receive in exchange for your Fractional Interests will be calculated in accordance with section 6.03 of the Plan. You will not have to pay premiums and servicing costs out of pocket – all of that will be paid by the pool.
Transparency strongly recommends that you choose this option because your chances of recovery will no longer be tied to one policy, and you won’t have to pay any more money out of pocket.
Please see the Plan for more detail.
Third Option
An IRA Holder may choose to exchange its Prepetition IRA Note for a Class B3 Note. The principal amount of a Class B3 Note will equal the aggregate of the Fractional Death Benefits due under your Prepetition IRA Note.
Like with the “Continuing Interest Holder” Election, if you choose the “Note Election,” your interest in whatever policy you invested in prior to the bankruptcy. If you exercise that option, you will have to continue to pay premiums and servicing costs for your policy until your policy matures.
As described in greater detail in the Transparency Disclosure Statement, there are potentially severe tax consequences associated with electing to receive a Class B3 Note. If, at or before the Confirmation Hearing, the Bankruptcy Court determines that the Class B3 Notes may not be issued pursuant to the Plan, then any IRA Holder who made this election to receive a Class B3 Note will be deemed to have made a Position Holder Trust Election.
Please see the Transparency Plan for more detail.
Yes, you are entitled to cast a ballot on the Transparency Plan. Please be advised that for your vote to count, you must complete, execute, and deliver your Transparency Plan ballot to the Balloting Agent so that your ballot is received by the Balloting Agent by 5:00 PM Central Time on August 22, 2016.
If the Court confirms the Transparency Plan and your Claim is allowed, you will receive, a Creditors’ Trust Interest up to the Allowed amount of your claim as described in section 7.06 of the Transparency Plan
Please see section 3.07 of the Transparency Plan for further detail.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
No. Pursuant to the Transparency Plan, Class C1 is unimpaired and deemed to accept the Transparency Plan.
If the Court confirms the Transparency Plan and your Claim is allowed, you will receive, at the Creditors’ Trustee’s option, either (i) payment full in cash, (ii) delivery of your collateral, (iii) reinstatement of your claim, or (iv) such other treatment that renders your claim unimpaired.
Please see section 3.08 of the Transparency Plan for further detail.
Yes.
If the Court confirms the Transparency Plan and your Claim is allowed, you will receive, a Creditors’ Trust Interest up to the Allowed amount of your claim as described in section 7.06 of the Transparency Plan
Please see section 3.08 of the Transparency Plan for further detail.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Please call Locke Lord at (512) 305-4700 and ask for Berry Spears or Stephen Humeniuk. You can also call (312) 443-0700 and ask to speak with David Wirt, Aaron Smith, or Brian Raynor.
Yes. The Transparency Plan contemplates a settlement that is substantially similar to the settlement in the Trustee’s Plan. A copy of the settlement agreement is in the materials that you received in the mail.
None. When the Transparency Plan’s Effective Date occurs, the Chapter 11 Trustee will be discharged.
A full breakdown of the fees under the Transparency Plan is set out in the beginning of the Disclosure Statement. In general, Transparency/BroadRiver will receive around $1.9 million a year for bringing its expertise to bear and managing the multi-billion dollar policy portfolio. Transparency/BroadRiver will also receive an estimated amount, on average, of $4 million a year in compensation for bringing $85 million to rescue the policy portfolio, bring this case out of bankruptcy, and to ensure that it does not go back to bankruptcy.
Please note that no plans are free. These policies are in bankruptcy because the investors were defrauded. So yes, Transparency will earn compensation for its expertise. But overall, the Transparency Plan charges lower fees and expenses to investors than what the Trustee’s Plan charges.
Yes, you can vote on the Transparency Plan. The notice was sent to you in error, and you should disregard it entirely.
We strongly encourage you to vote in favor of the Transparency Plan using the ballot that you received in the mail. If you discarded or misplaced your ballot, or if you didn’t receive a ballot and you think you should have, please let us know so that we can take down your information and ensure that a replacement is sent to you right away.
As a reminder, you have to mail in your ballot so that it is actually received by the balloting agent no later than August 22, 2016. So you should try to send it in at least a week in advance.