Below, you may access the master schedule of "Former Position Claims" relating to "former investments" held by investors, that was approved by the Bankruptcy Court, as amended. These are claims related to policy investments that did not mature during the time that the claiming investors held interests in or relating to the policy, and which were no longer held by such investors at the time that the confirmed bankruptcy Plan became effective, whether because the underlying investment positions were lapsed, abandoned, defaulted, sold for a loss, or experienced some other disposition that resulted in a “net cash loss” to the investor. Allowed Former Position Claims were generally converted by the Plan into beneficial interests in the Creditors’ Trust.
The Creditors’ Trustee emphasizes that holding a Former Position Claim is not the only basis for which a creditor of Life Partners can have a beneficial interest in the Creditors’ Trust, which also includes other unsecured, nonpriority claims that have been allowed against Life Partners, such as claims held by vendors and trade creditors of Life Partners, litigation creditors and taxing authorities.
Critically, the Creditors’ Trust generally does NOT include claims that relate to current policy investments that continue to be held by investors, with one technical exception. Under the Plan, investors – including investors who elected to remain as continuing holders of their investors to pool their investments with the Position Holder Trustee – were generally given the opportunity to have a relatively small “Additional Allowed Claim” corresponding to a beneficial interest in the Creditors’ Trust, for agreeing not to opt out of the assignment of their litigation claims against third parties to the Creditors’ Trust, to be pursued for the collective benefit of all Creditors’ Trust beneficiaries.
The amount of this Additional Allowed Claim was calculated as .5% of the Investor’s principal, underlying claim. Therefore, it is possible for a current investor whose principal claims are generally administered by the Position Holder Trust, to also be a Creditors’ Trust beneficiary with respect to its Additional Allowed Claim. Certain of these Additional Allowed Claims have since been disallowed as de minimus claims that were relatively negligible, were ineligible for Trust distributions due to the amount of the claim and burdensome to administer.
If you would like to abandon your beneficial interests in the Creditors’ Trust, please complete and return a copy of the Creditors’ Trust’s Abandonment Form, which you can access here.