Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Healthcare Equipment & Services

Life Partners Holdings Plan Filed

Life Partners Holdings' Chapter 11 trustee and the Company's official committee of unsecured creditors filed with the U.S. Bankruptcy Court an Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, "Current Position Holders will be deemed to have an Allowed Claim in the amount stated in amended Schedule F, regardless of any filed Proof of Claim Amount, and in exchange will be given the option to choose, for themselves, among the three Elections available to all Current Position Holders for treatment of their Allowed Claims relating to Fractional Positions under the Plan. A Position Holder Trust will be created to hold, and pay its Pro Rata share of carrying costs for, all of the Policies. The Position Holder Trust will be the legal and record owner of all of the Policies, subject to its right to designate a third party to serve as the record owner or beneficiary. The beneficiaries of the Position Holder Trust will be all of the Fractional Interest Holders other than those who make the Creditors' Trust Election, and the IRA Partnership, the members of which will be all of the IRA Holders other than those who make the Creditors' Trust Election or the Conversion Election...An IRA Partnership will be formed to hold Position Holder Trust Interests issued in respect of Claims of IRA Holders. The IRA Partnership will permit IRA Holders to receive the benefits of the long-term liquidation of the Beneficial Ownership in the Policies and other assets held by the Position Holder Trust. A new company (the Servicing Company, referred to in the Plan as 'Newco') will be created to service the Policies and administer the Continued Positions, the Position Holder Trust Interests and the IRA Partnership Interests (including maintaining or engaging a third party to maintain the ownership register for Continued Positions, Position Holder Trust Interests and IRA Partnership Interests). The Servicing Company will also service the Maturity Funds Facility and prepare various reports for the Position Holder Trust, the IRA Partnership and Holders of Continued Positions after the Effective Date."

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