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| 8-K - LIFE PARTNERS HOLDINGS INC | v207534_8-k.htm |
LPHI
Announces Initial Distribution of Life Settlement Trust
Proceeds
through Special Cash Dividend
WACO, TX — January 6, 2011 — Life
Partners Holdings, Inc. (Nasdaq GS: LPHI), parent company of
Life Partners, Inc., announced today that its board of directors has authorized
a special cash dividend payment of $0.04 per share to shareholders of record as
of January 31, 2011, to be paid on or about February 15, 2011. The
decision follows the company’s research to determine the most expedient method
of distributing proceeds from the company’s investment in a life settlements
trust to LPHI shareholders.
Brian D.
Pardo, LPHI CEO said, “After looking at a number of different structures, the
board has decided the best way to distribute these proceeds is to review
accumulated payouts from the trust on a quarterly basis. When the
payout accumulation reaches at least $750,000 at the end of a quarter, the board
can then declare a special dividend, as it has done today.”
LPHI
currently owns approximately 20% of the trust which holds a portfolio of 266
life settlements with a face value of $689 million.
This
special dividend is based on the accumulated payouts from the life settlement
trust and is in addition to the company’s regular quarterly
dividends.
Life Partners is the world’s
oldest and one of the most active companies in the United States engaged in the
secondary market for life insurance, commonly called “life
settlements.” Since its incorporation in 1991, Life Partners has
completed over 126,000 transactions for its worldwide client base of over 27,000
high net worth individuals and institutions in connection with the purchase of
over 6,400 policies totaling over $2.8 billion in face value.
Safe
Harbor - This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements as a result of various
factors. The statements in this news release that are not historical
statements, including statements regarding future payment of special dividends,
are forward-looking statements within the meaning of the federal securities
laws. These statements are subject to numerous risks and
uncertainties, many of which are beyond our control, which could cause actual
results to differ materially from such statements. For information
concerning these risks and uncertainties, see our most recent Form 10-K. We
disclaim any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as may be required by law.
************
LPHI-D
FOR MORE INFORMATION,
CONTACT:
Shareholder
Relations (254) 751-7797 or info@lifepartnersinc.com
Visit our
website at: www.lphi.com
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