Life Funds Trustee Information Website

RECENT DEVELOPMENTS

On July 23, 2010, the Trustee received from Aviva the $539,039.63 settlement payment previously approved by the Bankruptcy Court. On July 26, 2010, the Trustee dismissed his adversary complaint against Aviva with prejudice, in accordance with the settlement agreement between Aviva and the Trustee.


On July 26, 2010 the Trustee filed a motion seeking, among other things, approval of procedures to sell life policy assets owned by the Debtors' estates. The motion is scheduled for hearing on August 18, 2010 at 9:30 a.m.


On July 14, 2010, the Estates received payment from PCI in the amount of $247,750.00.


As of July 16, 2010, the Trustee has not received any PCI settlement payments for the month of July. The Trustee will post notice when payment has been received.


The Trustee has not received from PCI the settlement pay due from PCI on June 15, 2010 in the amount of $833,333. PCI initially informed the Trustee that it intended to make this payment but that it was unable to do so due to a banking delay. The Trustee will post notice if and when this payment is made.


On June 30, 2010 the Bankruptcy Court entered this order establishing August 31, 2010 as the last day to file proofs of claim in these bankruptcy cases. The order specifies that individuals who have already filed a proof of claim do not need to file another proof of claim. Individuals who have not yet filed a proof of claim but wish to do so may use this court-approved proof of claim form.


Completed proofs of claim may be sent via US Mail to:

The Garden City Group, Inc.
Attn: Life Funds Claims Processing
P.O. Box 9553
Dublin, OH 43017-4853


On June 17, 2010, the Estates received payment from Provident Capital Indemnity, Ltd. in the amount of $247,750.00 due under the PCI Settlement Agreement.


On June 24, 2010, the Trustee filed its Fourth Status Report. That pleading appears as docket number 395.


Update: Additional cash recoveries for the bankruptcy estates. On June 2, 2010, the Trustee received payment in the amount of $376,830 from the receiver for W Financial Group. The receiver sold a house previously inhabited by Adley Abdulwahab and transferred to the Trustee the portion of those sale proceeds payable to the A&O bankruptcy estates under the settlement agreement between the estates and the receiver. On June 10, 2010, the Trustee received $16,362.62 in funds voluntarily turned over to the Trustee upon written demand from the Trustee. On June 14, 2010, the Trustee received $4,765.10 in funds voluntarily turned over to the Trustee upon written demand of the Trustee. These voluntarily turned over funds had been held by attorneys previously retained or consulted by the Debtors.


On May 30, counsel to the Trustee filed March operating reports for the Life Fund debtors. The March operating reports appear at docket entries 376, 377, 378, 379, 380, 381 and 382.

On May 14, the Estates received a $243,750 payment due under the PCI Settlement Agreement. On May 24, the Estates received a check in the amount of $1,279 on account of unearned premiums refunded due to the cancellation of a bond securing performance by former trustee Patrick Collins. On May 24, the Trustee filed a motion seeking court authority to examine Principal Financial Group regarding policy 4621303, which policy the Trustee has reason to believe is an asset of the bankruptcy estates. That pleading appears at docket number 373.


On April 15, 2010, the Debtors' estates received from Provident Capital Indemnity, Ltd. a settlement payment in the amount of $243,750.00, in accordance with a settlement agreement between the Debtors and PCI approved by order of the Bankruptcy Court dated March 24, 2010. The Trustee looks forward to continuing to work with Provident Capital Indemnity, Ltd. under both settlement agreements approved by the Bankruptcy Court and with respect to all PCI bonds securing policies held by the Debtors' estates.


On April 7, 2010, Chapter 11 Trustee Jeff Marwil held a listen-only conference call to address creditors of and investors in the A&O / Life Fund bankruptcy cases. A recording of the call can be heard by clicking here.


On March 22, 2010, Trustee Jeff Marwil filed a Routine Motion to Pay a Bond Premium. See Motion.


On March 18, 2010, the Court issued an Order allowing Chapter 11 Trustee Jeff Marwil’s motion to retain Proskauer Rose LLP as his counsel.


On March 16, 2010, Trustee Jeff Marwil filed a statement regarding the pending motion to dismiss or transfer the bankruptcy cases.


On March 8, in a written opinion, the Court Certified the election of Jeff Marwil as Chapter 11 Trustee. Patrick Collins, outgoing Trustee, has pledged his cooperation during a brief transition period. Mr. Marwil will continue to use the current website (www.lifefundstrustee.com), telephone hotline (1-800-826-6412) and email address (LifeFundsInfo@gardencitygroup.com) to communicate with creditors, investors, and other parties of interest in the Chapter 11 cases.




POLICY UPDATE: As the Trustee has previously advised investors, there are two significant policies that are in danger of lapsing in the event substantial premiums are not paid. Information regarding the circumstances of each policy and related decisions as to payment of premiums are set forth below. The Trustee welcomes prompt investors' opinions on these important decisions as he continues to explore all options and seek out additional information. In addition, any individual or entity that is interested in purchasing either of the policies identified below should contact Rob Stark of Melville Capital at (212) 380-4277.


$10,000,000 face value, American General Policy #U10033937L:

$13,700,000 face value, West Coast Policy #ZUA341379 (also referred as ULA341379):

Additional information about recent activity can be found here.



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