LIFE PARTNERS HOLDINGS INC - FORM 8-K - EX-99.3 - EXHIBIT 99.3 - March 21, 2016

Attached files

file filename
8-K - 8-K - LIFE PARTNERS HOLDINGS INCv434871_8k.htm
EX-99.1 - EXHIBIT 99.1 - LIFE PARTNERS HOLDINGS INCv434871_ex99-1.htm
EX-99.2 - EXHIBIT 99.2 - LIFE PARTNERS HOLDINGS INCv434871_ex99-2.htm

 

Exhibit 99.3

 

  Monthly Operating Report
  ACCRUAL BASIS

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)
   
JUDGE: Russell Nelms

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN & EASTERN DISTRICTS OF TEXAS

 

REGION 6

 

MONTHLY OPERATING REPORT

 

MONTH ENDING: February   2016  
  MONTH   YEAR  

 

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

 

RESPONSIBLE PARTY:    
     
/s/ H. Thomas Moran II   Trustee
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY   TITLE
     
H. Thomas Moran II   3/21/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Colette Pieper   CEO
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Colette Pieper   3/21/2016
PRINTED NAME OF PREPARER   DATE

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-1

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   DECEMBER   JANUARY   FEBRUARY  
ASSETS                      
1.  UNRESTRICTED CASH  $1,744,873   $510,400   $25,314   $37,524  
2.  RESTRICTED CASH                      
3.  TOTAL CASH  $1,744,873   $510,400   $25,314   $37,524   
4.  ACCOUNTS RECEIVABLE (NET)  $2,741,107   $0            2
5.  INVENTORY                      
6.  NOTES RECEIVABLE                      
7.  PREPAID EXPENSES                      
8.  OTHER (ATTACH LIST)       $0   $0   $0   
9.  TOTAL CURRENT ASSETS  $4,485,981   $510,400   $25,314   $37,524   
10.  PROPERTY, PLANT & EQUIPMENT                      
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION                      
12.  NET PROPERTY, PLANT & EQUIPMENT  $0   $0   $0   $0   
13.  DUE FROM INSIDERS  $4,157,912                 1
14.  OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)                      
15.  OTHER (ATTACH LIST)                      
16.  TOTAL ASSETS  $8,643,892   $510,400   $25,314   $37,524   
POSTPETITION LIABILITIES                      
17.  ACCOUNTS PAYABLE       $0   $0   $0   
18.  TAXES PAYABLE                      
19.  NOTES PAYABLE                      
20.  PROFESSIONAL FEES       $82,269   $152,290   $240,281   
21.  SECURED DEBT                      
22.  OTHER (ATTACH LIST)       $5,138   $5,138   $5,138  3
23.  TOTAL POSTPETITION LIABILITIES       $87,407   $157,428   $245,419   
PREPETITION LIABILITIES                      
24.  SECURED DEBT                      
25.  PRIORITY DEBT   unknown                  
26.  UNSECURED DEBT  $9,001   $1,062   $1,062   $1,062   
27.  OTHER (ATTACH LIST)                      
28.  TOTAL PREPETITION LIABILITIES  $9,001   $1,062   $1,062   $1,062   
29.  TOTAL LIABILITIES  $9,001   $88,468   $158,490   $246,480   
EQUITY                      
30.  PREPETITION OWNERS' EQUITY        $5,901,723   $5,901,723   $5,901,723   
31.  POSTPETITION CUMULATIVE
PROFIT OR (LOSS)		       $1,416,090   $1,341,818   $1,264,986   
32.  DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)		       $(6,895,882)  $(7,376,718)  $(7,375,666 )1
33.  TOTAL EQUITY       $421,932   $(133,176)  $(208,956 ) 
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $510,400   $25,314   $37,524   

 

  1 This is Intercompany Due From Life Partners, Inc. reported on Schedule B Item 16 and shown above under Item 13. Due From Insiders.
  2 The Debtor LPIFS records receipts on a cash basis and accordingly, does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.
  3 The amounts shown here for December & Janauary were previously included in the amounts shown on Line 20. Professional Fees.
     

 

 

 

 

  Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-1

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

    SCHEDULE
AMOUNT		     DECEMBER     JANUARY     FEBRUARY  
POSTPETITION LIABILITIES                                
22.   US TRUSTEE FEES           $ 5,138     $ 5,138     $ 5,138  
22   TOTAL OTHER POSTPETITION LIABILITIES           $ 5,138     $ 5,138     $ 5,138  

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-2

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

INCOME STATEMENT  NOVEMBER   DECEMBER   JANUARY   FEBRUARY   
REVENUES                      
1.  GROSS REVENUES  $53,944   $28,943   $15,452   $12,364 
2.  LESS: RETURNS & DISCOUNTS                      
3.  NET REVENUE  $53,944   $28,943   $15,452   $12,364   
COST OF GOODS SOLD                      
4.  MATERIAL                      
5.  DIRECT LABOR                      
6.  DIRECT OVERHEAD                      
7.  TOTAL COST OF GOODS SOLD  $0   $0   $0   $0   
8.  GROSS PROFIT  $53,944   $28,943   $15,452   $12,364   
OPERATING EXPENSES                      
9.  OFFICER / INSIDER COMPENSATION                      
10.  SELLING & MARKETING                      
11.  GENERAL & ADMINISTRATIVE  $464   $270   $213   $154   
12.  RENT & LEASE                      
13.  OTHER (ATTACH LIST)                      
14.  TOTAL OPERATING EXPENSES  $464   $270   $213   $154   
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $53,480   $28,673   $15,239   $12,210   
OTHER INCOME & EXPENSES                      
16.  NON-OPERATING INCOME (ATTACH LIST)                      
17.  NON-OPERATING EXPENSE (ATTACH LIST)                      
18.  INTEREST EXPENSE                      
19.  DEPRECIATION / DEPLETION                      
20.  AMORTIZATION                      
21.  OTHER (ATTACH LIST)                      
22.  NET OTHER INCOME & EXPENSES  $0   $0   $0   $0   
REORGANIZATION EXPENSES                      
23.  PROFESSIONAL FEES  $154,967   $63,226   $88,755   $88,693   
24.  U.S. TRUSTEE FEES  $0   $0   $325   $0   
25.  OTHER (ATTACH LIST)  $684   $560   $431   $350  1
26.  TOTAL REORGANIZATION EXPENSES  $155,650   $63,786   $89,511   $89,043   
27.  INCOME TAX                      
28.  NET PROFIT (LOSS)  $(102,170)  $(35,113)  $(74,272)  $(76,832)  

 

1 Expenses for Relativity Hosting, Privilege Log Export and Trustee Expense Reimbursement.

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-3

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

   QUARTER   JANUARY   FEBRUARY   MARCH   QUARTER   
CASH RECEIPTS AND DISBURSEMENTS  ENDED 12/31/2015               ENDED 3/31/2016   
1.   CASH - BEGINNING OF MONTH       $510,400   $25,314   $37,524     
RECEIPTS FROM OPERATIONS                           
2.  CASH SALES  $299,238   $15,452   $12,364        $27,816   
COLLECTION OF ACCOUNTS RECEIVABLE                           
3.  PREPETITION  $0                  $0   
4.  POSTPETITION  $0                  $0   
5.  TOTAL OPERATING RECEIPTS  $299,238   $15,452   $12,364   $0   $27,816   
NON-OPERATING RECEIPTS                           
6.  LOANS & ADVANCES (ATTACH LIST)  $0                  $0   
7.  SALE OF ASSETS  $0                  $0   
8.  OTHER (ATTACH LIST)  $47,229   $1,334   $11,835   $0   $13,169   
9.  TOTAL NON-OPERATING RECEIPTS  $47,229   $1,334   $11,835   $0   $13,169   
10.  TOTAL RECEIPTS  $346,467   $16,786   $24,199   $0   $40,985   
11.  TOTAL CASH AVAILABLE       $527,186   $49,513   $37,524        
OPERATING DISBURSEMENTS                           
12.  NET PAYROLL  $0                  $0   
13.  PAYROLL TAXES PAID  $0                  $0   
14.  SALES, USE & OTHER TAXES PAID  $0                  $0   
15.  SECURED / RENTAL / LEASES  $0                  $0   
16.  UTILITIES  $0                  $0   
17.  INSURANCE  $0                  $0   
18.  INVENTORY PURCHASES  $0                  $0   
19.  VEHICLE EXPENSES  $0                  $0   
20.  TRAVEL  $0                  $0   
21.  ENTERTAINMENT  $0                  $0   
22.  REPAIRS & MAINTENANCE  $0                  $0   
23.  SUPPLIES  $25,513                  $0  1
24.  ADVERTISING  $0                  $0   
25.  OTHER (ATTACH LIST)  $901,173   $501,547   $11,989   $0   $513,536   
26.  TOTAL OPERATING DISBURSEMENTS  $926,686   $501,547   $11,989   $0   $513,536   
REORGANIZATION EXPENSES                           
27.  PROFESSIONAL FEES  $0                  $0   
28.  U.S. TRUSTEE FEES  $325   $325             $325   
29.  OTHER (ATTACH LIST)  $0                  $0   
30.  TOTAL REORGANIZATION EXPENSES  $325   $325   $0   $0   $325   
31.  TOTAL DISBURSEMENTS  $927,011   $501,872   $11,989   $0   $513,861  2
32.  NET CASH FLOW  $(580,544)  $(485,086)  $12,210   $0   $(472,876)  
33.  CASH - END OF MONTH       $25,314   $37,524   $37,524        

 

  1 Item 23. Supplies includes $25,000 of postage.
  2 Total Disbursements includes the following amounts that are NOT disbursements, but are transfers of funds between bank accounts (from LPI Financial Services account to Life Partners, Inc. account) for the periods shown below.

 

December 31, 2015  $628,957.75 
January 31, 2016  $500,000.00 
February 29, 2016  $- 

 

 

 

 

 

  Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-3

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

   QUARTER   JANUARY   FEBRUARY   MARCH   QUARTER 
CASH RECEIPTS AND DISBURSEMENTS  ENDED 12/31/2015               ENDED 3/31/2016 
NON-OPERATING RECEIPTS (OTHER)                         
8.  FLOW THRU PREMIUMS  $13,585   $1,334   $11,450        $12,784 
8.  PREMIUMS RETURNED  $0        $386        $386 
8.  RECEIPTS TO BE FORWARDED TO LPI  $33,644                  $0 
9.  TOTAL NON-OPERATING RECEIPTS  $47,229   $1,334   $11,835   $0   $13,169 
OPERATING DISBURSEMENTS                         
25.  BANK FEES  $2,018   $213   $154        $367 
25.  CREDIT CARD PROCESSING FEES  $20                  $0 
25.  FLOW THRU PREMIUMS  $15,491   $1,334   $11,450        $12,784 
25.  PREMIUMS RETURNED  $0        $386        $386 
25.  TRANSFER TO LPI BANK ACCOUNT  $883,644   $500,000             $500,000 
25  TOTAL OPERATING DISBURSEMENTS (OTHER)  $901,173   $501,547   $11,989   $0   $513,536 

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-4

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

ACCOUNTS RECEIVABLE AGING  SCHEDULE
AMOUNT		   DECEMBER   JANUARY   FEBRUARY 
1.  0-30                    
2.  31-60  $803,662                
3.  61-90                    
4.  91+  $1,937,445                
5.  TOTAL ACCOUNTS RECEIVABLE  $2,741,107   $0   $0   $0 
6.  AMOUNT CONSIDERED UNCOLLECTIBLE                    
7.  ACCOUNTS RECEIVABLE (NET)  $2,741,107   $0   $0   $01

 

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: February 2016

 

   0-30   31-60   61-90   91+     
TAXES PAYABLE  DAYS   DAYS   DAYS   DAYS   TOTAL 
1.  FEDERAL                      $0 
2.  STATE                      $0 
3.  LOCAL                      $0 
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL TAXES PAYABLE  $0   $0   $0   $0   $0 
                             
6.  ACCOUNTS PAYABLE                      $0 

 

STATUS OF POSTPETITION TAXES MONTH: February 2016

 

   BEGINNING   AMOUNT       ENDING 
   TAX   WITHHELD AND/   AMOUNT   TAX 
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY 
1.  WITHHOLDING                  $0 
2.  FICA-EMPLOYEE                  $0 
3.  FICA-EMPLOYER                  $0 
4.  UNEMPLOYMENT                  $0 
5.  INCOME                  $0 
6.  OTHER (ATTACH LIST)                  $0 
7.  TOTAL FEDERAL TAXES   $0   $0   $0   $0 
STATE AND LOCAL                    
8.  WITHHOLDING                  $0 
9.  SALES                  $0 
10.  EXCISE                  $0 
11.  UNEMPLOYMENT                  $0 
12.  REAL PROPERTY                  $0 
13.  PERSONAL PROPERTY                  $0 
14.  OTHER (ATTACH LIST)                  $0 
15.  TOTAL STATE & LOCAL   $0   $0   $0   $0 
16.  TOTAL TAXES   $0   $0   $0   $0 

 

1 The Debtor LPIFS records receipts on a cash basis and accordingly does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-5

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

 

BANK RECONCILIATIONS      MONTH:   February 2016 
             
   Account #1   Account #2   Account #3     
A. BANK:  Bank of Texas             
B. ACCOUNT NUMBER:   4069              TOTAL 
C. PURPOSE (TYPE):  Checking                
1.  BALANCE PER BANK STATEMENT   $47,906             $47,906 
2.  ADD: TOTAL DEPOSITS NOT CREDITED                  $0 
3.  SUBTRACT: OUTSTANDING CHECKS   $10,382             $10,382 
4.  OTHER RECONCILING ITEMS                  $0 
5.  MONTH END BALANCE PER BOOKS   $37,524   $0   $0   $37,524 
6.  NUMBER OF LAST CHECK WRITTEN    1035                

 

INVESTMENT ACCOUNTS

 

   DATE OF   TYPE OF   PURCHASE   CURRENT 
BANK, ACCOUNT NAME & NUMBER  PURCHASE   INSTRUMENT   PRICE   VALUE 
7.                 
8.                       
9.                       
10.                       
11.  TOTAL INVESTMENTS            $0   $0 
                        
CASH                    
                        
12.  CURRENCY ON HAND                 $0 
                        
13.  TOTAL CASH - END OF MONTH                 $37,524 

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-6

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

  MONTH: February 2016

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF  AMOUNT   TOTAL PAID 
   NAME  PAYMENT  PAID   TO DATE 
1.  Advance Trust & Life Escrow Services  Premium Remittance  $11,450   $110,930 
2.  Purchase Escrow Services, LLC  Premium Remittance  $0   $3,803 
3.                
4.                
5.                
6.  TOTAL PAYMENTS TO INSIDERS     $11,450   $114,734 

 

PROFESSIONALS1
      DATE OF COURT              TOTAL 
      ORDER AUTHORIZING  AMOUNT   AMOUNT   TOTAL PAID   INCURRED 
NAME  PAYMENT  APPROVED   PAID   TO DATE   & UNPAID 
1.  Asset Servicing Group  12/15/15  $819,974        $819,974   $306,5102
2.  Bridgepoint Consulting  12/15/15  $784,462   $111,201   $784,462   $392,160 
3.  Epiq Bankruptcy Solutions  05/22/15  $2,867,313   $331,050   $2,675,023   $217,290 
4.  Kim Hinkle, Attorney at Law  12/15/15  $215,404   $15,028   $215,404   $62,295 
5.  MMS Advisors                    $217,6004
6.  Munsch, Hardt, Kopf & Harr, P.C.  12/15/15  $1,673,802        $1,673,802   $766,644 
7.  Thompson & Knight LLP  12/15/15  $8,304,511        $8,307,945   $4,155,0073
8.  Tom Moran, US Trustee  12/18/15  $11,850        $11,850   $611,4865
9.  Phillips Murrah  12/15/15  $166,426   $14,375   $166,426   $84,643 
10.  Smith, Jackson, Boyer & Brovard, PLLC  12/18/15  $55,199        $55,199   $7,795 
11.  Predictive Resources  11/19/15  $164,517   $72,396   $164,517   $169,867 
12.  D3G/Lewis & Ellis  12/03/15  $88,912        $88,912   $157,663 
13.  Barbara Pope  12/15/15  $42,477        $42,477   $06
14.  TOTAL PAYMENTS TO PROFESSIONALS          $544,050   $15,005,992   $7,148,9611

 

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

 

   SCHEDULED   AMOUNTS     
   MONTHLY   PAID   TOTAL 
   PAYMENTS   DURING   UNPAID 
NAME OF CREDITOR  DUE   MONTH   POSTPETITION 
1.               
2.                  
3.                  
4.                  
5.                  
6.  TOTAL  $0   $0   $0 

 

1   Professional fees and expenses estimated and accrued prior to May 19th are reflected only on the books of Life Partners Holdings, Inc.  Thereafter, professional fees and expenses reflect the estimated aggregate, unallocated fees and expenses for all of the Debtors, and are noted on each of the Debtors MORs.
2   Amount Paid includes payment authorized by Fee Procedures Orders dated 8/6/15 & 10/29/15.
3   Total Paid To Date for Thompson & Knight includes $3,434 in filing fees paid twice (at the time of filing and when the fee application was paid) which is not duplicated in Amount Approved.
4   MMS Advisors incurred fees and expenses March 13th - May 18th in the estimated amount of $230,000.00 that are not included here since their retention has not been approved for this period of time.
5   Total Paid To Date excludes out-of-pocket expense reimbursements on behalf of subsidiary debtors.
6   Amounts shown are for Fee Applications only and do not include subsequent employee/contractor payments.

 

 

 

  

  Monthly Operating Report
   ACCRUAL BASIS-7

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

  MONTH: February 2016

 

QUESTIONNAIRE

 

      YES   NO  
1.   HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?       X  
2.   HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?       X  
3.   ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?       X  
4.   HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?       X  
5.   HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?       X  
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?       X  
7.   ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?       X  
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?       X  
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE?       X  
10.   ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?       X  
11.   HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?       X  
12. ARE ANY WAGE PAYMENTS PAST DUE?       X  

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
 
 
 

 

INSURANCE

 

      YES   NO  
1.   ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?   X      
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT?   X      
3. PLEASE ITEMIZE POLICIES BELOW.          

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
 
 
 

 

 INSTALLMENT PAYMENTS
TYPE OF           PAYMENT AMOUNT  
POLICY   CARRIER   PERIOD COVERED   & FREQUENCY  
                 
                 
                 
                 

 

 

 

LIFE PARTNERS HOLDINGS INC Reports