LIFE PARTNERS HOLDINGS INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 20, 2016

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Exhibit 99.2

 

  Monthly Operating Report
  ACCRUAL BASIS

 

CASE NAME: Life Partners, 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:   March   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   4/20/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Paula Toy   Vice-President of Finance
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Paula Toy   4/20/2016
PRINTED NAME OF PREPARER   DATE

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-1

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)
   
COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   JANUARY   FEBRUARY   MARCH    
ASSETS                           
1.  UNRESTRICTED CASH  $295,821   $404,644   $2,506,578   $813,452    
2.  RESTRICTED CASH  $101,555   $0   $0   $0   3
3.  TOTAL CASH  $397,376   $404,644   $2,506,578   $813,452    
4.  ACCOUNTS RECEIVABLE (NET)  $143,949   $133,532   $106,096   $106,096    
5.  INVENTORY                       
6.  NOTES RECEIVABLE  $8,912                   
7.  PREPAID EXPENSES  $343,387   $73,541   $83,448   $117,925   6
8.  OTHER (ATTACH LIST)  $49,475   $54,082   $53,963   $53,844    
9.  TOTAL CURRENT ASSETS  $943,098   $665,799   $2,750,086   $1,091,318    
10.  PROPERTY, PLANT & EQUIPMENT       $1,954,154   $1,954,154   $1,976,964    
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION       $(1,858,413)  $(1,864,695)  $(1,868,569)   
12.  NET PROPERTY, PLANT & EQUIPMENT  $299,672   $95,741   $89,460   $108,396    
13.  DUE FROM INSIDERS  $74,265,951   $0   $0   $0    
14.  OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)  $662,950   $0   $0   $0    
15.  OTHER (ATTACH LIST)  $13,513,629   $15,032,933   $15,274,763   $15,892,426    
16.  TOTAL ASSETS  $89,685,300   $15,794,473   $18,114,308   $17,092,139    
                           
17.  ACCOUNTS PAYABLE       $1,047,432   $690,282   $752,003   4
18.  TAXES PAYABLE       $81,389   $84,441   $89,914   5
19.  NOTES PAYABLE       $0   $0   $0    
20.  PROFESSIONAL FEES       $1,747,752   $3,911,160   $5,236,832   4&7
21.  SECURED DEBT       $0   $0   $0    
22.  OTHER (ATTACH LIST)       $19,317,240   $22,574,007   $22,600,295    
23.  TOTAL POSTPETITION LIABILITIES       $22,193,812   $27,259,890   $28,679,045    
PREPETITION LIABILITIES                       
24.  SECURED DEBT   undetermined   $5,976   $4,504   $4,504   2&5
25.  PRIORITY DEBT   undetermined   $0   $0   $0    
26.  UNSECURED DEBT  $9,203,450   $686,588   $686,588   $686,588    
27.  OTHER (ATTACH LIST)       $0   $0   $0    
28.  TOTAL PREPETITION LIABILITIES  $9,203,450   $692,564   $691,092   $691,092    
29.  TOTAL LIABILITIES  $9,203,450   $22,886,376   $27,950,983   $29,370,137    
EQUITY                       
30.  PREPETITION OWNERS' EQUITY        $78,978,770   $78,978,770   $78,978,770    
31.  POSTPETITION CUMULATIVE PROFIT OR (LOSS)       $(15,953,744)  $(18,693,604)  $(20,921,138)   
32.  DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)       $(70,116,929)  $(70,121,841)  $(70,335,631)  1
33.  TOTAL EQUITY       $(7,091,902)  $(9,836,675)  $(12,277,998)   
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $15,794,473   $18,114,308   $17,092,139    

 

1This includes the following intercompany amounts shown below. The Schedule Amount related to this is shown under Item 13. Due From Insiders.

 

Due from Life Partners Holdings, Inc.  $77,688,193.64 
Due from LPHI Management Services  $11,719.74 
Due to LPI Financial Services, Inc.  $(7,364,282.57)
   $  70,335,630.81 

 

2Item 24. Secured Debt is accrued property taxes for the prepetition period of Jan. 1, 2015 thru May 19, 2015. This decreased due to the payment of property taxes on Furniture, Fixtures & Equipment.
3Item 2. Remaining balance representing interest income paid out in January leaving $0 balance in account.
4Item 17. Accounts Payable includes $694,767.10 of invoices from bankruptcy professionals that would otherwise be included in Item 20. Professional Fees.
5Accrued personal property taxes includes 2015 property tax accessed on the airplane which remains unpaid.
6Item 7. Prepaid Expenses includes $39,873.94 postage purchased for upcoming mailout in March.
7Item 20. Professional Fees reflects expenses allocated to LPI. MOR-6 reflects all bankruptcy professional fees of Life Partners Holdings and its subsidiaries.

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-1

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   JANUARY   FEBRUARY   MARCH     
8.  OTHER CURRENT ASSETS                        
8.  Pardo Family Holdings Trust (Advance to Price L. Johnson, PC)  $25,000   $25,000   $25,000   $25,000     
8.  Pardo Family Holdings Trust (Advance to Kyle, Mathis & Lucas, LLP)  $15,505   $15,505   $15,505   $15,505     
8.  ESP Communications Duplicate Payment  $7,500   $7,500   $7,500   $7,500     
8.  Advance Trust & Life Escrow Services, LTA (Abandonment Premiums)       $5,064   $5,064   $5,064     
8.  Employee Advances  $992   $0   $0   $0     
8.  Notes Receivable-Employee  $477   $1,012   $894   $775     
8                           
8.  TOTAL - OTHER CURRENT ASSETS  $49,475   $54,082   $53,963   $53,844     
14.   OTHER ASSETS - NET OF AMORTIZATION                        
14.  Woolly Mammoth & Other Prehistoric Artifacts  $662,950   $-   $-   $-    1
14.                           
14.                           
14.                           
14.                           
14.  TOTAL - OTHER ASSETS (Net of Amort.)  $662,950   $-   $-   $-     
                            
15.  TDL, LLC Misappropriation of Foreign Exchange Funds  $257,395                    
15.  Advance on Premiums paid by PES on behalf of investors  $13,083,062   $14,968,582   $15,167,711   $15,723,425     
15.  Advance on Premiums paid by ATLES on behalf of investors  $136,291   $427,773   $455,398   $520,993     
15.  Allowance for Bad Debts       $(5,483,317)  $(5,483,317)  $(5,483,317 )  
15.  Overpayments of Commissions Receivable  $36,881                    
15.  Deferred Income Tax Benefit       $4,632,419   $4,632,419   $4,632,419     
15.  Policy Purchase       $123,591   $123,591   $123,591     
15.  Capitalized Premiums on Policies Purchased       $348,328   $363,403   $363,403     
15.  Deposits       $15,558   $15,558   $11,912     
15.  TOTAL - OTHER ASSETS  $13,513,629   $15,032,933   $15,274,763   $15,892,426     
                            
POSTPETITION LIABILITIES                        
22.  Accrued Payroll       $45,239   $47,407   $70,556     
22.  Accrued Vacation       $85,635   $88,609   $87,848     
22.  Accrued 401K       $0   $0   $0     
22.  US Trustee Fees       $16,530   $18,155   $22,055    3
22.  Phoenix Life Insurance Settlement       $313,835   $313,835   $313,835    2
22.  Loan From Maturities (Dkt 1127)       $13,828,486   $17,078,485   $17,078,485     
22.  Deferred Revenue       $5,027,515   $5,027,515   $5,027,515     
22  TOTAL - OTHER POSTPETITION LIABILITIES       $19,317,240   $22,574,007   $22,600,295     

 

1Sold pursuant to court order Dkt.1053
2Funds received from class action lawsuit against Phoenix Life Insurance regarding COI increases.
3This was previously shown as part of Line 20. Professional Fee Liability on page 1 of the Monthly Operating Report.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-2

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

INCOME STATEMENT  DECEMBER   JANUARY   FEBRUARY   MARCH    
REVENUES                       
1.  GROSS REVENUES                       
2.  LESS: RETURNS & DISCOUNTS                       
3.  NET REVENUE  $0   $0   $0   $0    
COST OF GOODS SOLD                       
4.  MATERIAL  $0   $0   $0   $0    
5.  DIRECT LABOR  $0   $0   $0   $0    
6.  DIRECT OVERHEAD  $15,471   $28,979   $14,064   $13,307    
7.  TOTAL COST OF GOODS SOLD  $15,471   $28,979   $14,064   $13,307    
8.  GROSS PROFIT  $(15,471)  $(28,979)  $(14,064)  $(13,307)   
OPERATING EXPENSES                       
9.  OFFICER / INSIDER COMPENSATION  $33,223   $28,794   $28,794   $30,908    
10.  SELLING & MARKETING  $0   $0   $0   $0    
11.  GENERAL & ADMINISTRATIVE  $288,595   $258,192   $250,035   $264,894    
12.  RENT & LEASE  $24,148   $19,571   $15,054   $14,148    
13.  OTHER (ATTACH LIST)  $41,952   $28,532   $9,630   $(8,799)   
14.  TOTAL OPERATING EXPENSES  $387,919   $335,090   $303,514   $301,151    
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(403,389)  $(364,069)  $(317,578)  $(314,458)   
OTHER INCOME & EXPENSES                       
16.  NON-OPERATING INCOME (ATTACH LIST)  $(3,604)  $(3,909)  $(3,867)  $(3,591)  1
17.  NON-OPERATING EXPENSE (ATTACH LIST)  $0   $0   $0   $0    
18.  INTEREST EXPENSE  $0   $0   $0   $0    
19.  DEPRECIATION / DEPLETION  $6,377   $6,406   $6,281   $3,874    
20  AMORTIZATION  $0   $0   $0   $0    
21.  OTHER (ATTACH LIST)  $(2,000)  $0   $0   $0    
22.  NET OTHER INCOME & EXPENSES  $774   $2,497   $2,415   $283    
REORGANIZATION EXPENSES                       
23.  PROFESSIONAL FEES  $1,190,945   $2,098,424   $2,393,698   $1,902,488   2
24.  U.S. TRUSTEE FEES  $7,000   $4,875   $1,625   $3,900    
25.  OTHER (ATTACH LIST)  $19,727   $26,318   $24,544   $6,404    
26.  TOTAL REORGANIZATION EXPENSES  $1,217,673   $2,129,617   $2,419,867   $1,912,792    
27.  INCOME TAX                       
28.  NET PROFIT (LOSS)  $(1,621,836)  $(2,496,183)  $(2,739,860)  $(2,227,534)   

 

1See Supplement To Accrual Basis-2.
2Item 23. Prefessional Fees for December includes a $330,000 adjustment to fees previously recorded for Thompson & Knight per Docket 1325.

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-2

 

CASE NAME:Life Partners, Inc.

 

CASE NUMBER:15-40289 (Jointly Administered)

 

INCOME STATEMENT  DECEMBER   JANUARY   FEBRUARY   MARCH    
OTHER OPERATING EXPENSES                       
13.  Other Expense- Premium Expense  $11,285   $31,679   $5,461   $(8,162)  1
13.  Other Expense- BK Premiums  $15,738   $287   $4,169   $(637)  1
13.  Legal & Professional Expense  $14,929   $(3,434)  $-         
13.  TOTAL - OTHER OPERATING EXPENSE  $41,952   $28,532   $9,630   $(8,799)   
NON-OPERATING INCOME                       
16.  Interest Income  $3,743   $3,867   $3,867   $3,618    
16.  Loss on Disposal of Fixed Assets  $(143)                  
16.  Other Income  $4   $42   $-   $(27)   
16.  TOTAL NON-OPERATING INCOME  $3,604   $3,909   $3,867   $3,591    
NON-OPERATING EXPENSE                       
17.     $-   $-   $-   $-    
17.                          
17.                          
17.                          
17.  TOTAL NON-OPERATING EXPENSE  $-   $-   $-   $-    
OTHER EXPENSE                       
21.  Franchise Tax  $-   $-   $-   $-    
21.  State Income Tax-Other  $(2,000)  $-   $-   $-    
21.                          
21.  TOTAL OTHER EXPENSE  $(2,000)  $-   $-   $-    
OTHER REORGANIZATION EXPENSES                       
25.  Relativity Hosting  $8,955   $6,888   $5,600   $6,404    
25.  Trustee Travel Expense            $11,264         
25.  Barbara Pope Contract Labor  $10,772   $19,430   $7,681         
25.  TOTAL OTHER REORGANIZATION EXP  $19,727   $26,318   $24,544   $6,404    

 

1This credit is the result of reclassifying to accounts receivable premiums that were expensed in prior months.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-3

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

CASH RECEIPTS AND DISBURSEMENTS  JANUARY   FEBRUARY   MARCH   QUARTER ENDED
MARCH 31, 2016		 
1.  CASH - BEGINNING OF MONTH  $293,421   $404,644   $2,506,578      
RECEIPTS FROM OPERATIONS                    
2.  CASH SALES                 $0 
COLLECTION OF ACCOUNTS RECEIVABLE                    
3.  PREPETITION                 $0 
4.  POSTPETITION  $132,088   $244,447   $61,866   $438,401 
5.  TOTAL OPERATING RECEIPTS  $132,088   $244,447   $61,866   $438,401 
NON-OPERATING RECEIPTS                    
6.  LOANS & ADVANCES (ATTACH LIST)  $-   $3,250,000        $3,250,000 
7.  SALE OF ASSETS                 $0 
8.  OTHER (ATTACH LIST)  $970,215   $3,890   $10,175   $984,280 
9.  TOTAL NON-OPERATING RECEIPTS  $970,215   $3,253,889   $10,175   $4,234,279 
10.  TOTAL RECEIPTS  $1,102,302   $3,498,337   $72,041   $4,672,680 
11.  TOTAL CASH AVAILABLE  $1,395,724   $3,902,981   $2,578,620      
OPERATING DISBURSEMENTS                    
12.  NET PAYROLL  $119,096   $114,483   $117,828   $351,407 
13.  PAYROLL TAXES PAID  $53,671   $48,912   $46,810   $149,393 
14.  SALES, USE & OTHER TAXES PAID       $4,164        $4,164 
15.  SECURED / RENTAL / LEASES  $19,571   $16,775   $14,148   $50,495 
16.  UTILITIES  $11,559   $9,337   $6,078   $26,974 
17.  INSURANCE  $1,559   $52,143   $1,256   $54,958 
18.  INVENTORY PURCHASES                 $0 
19.  VEHICLE EXPENSES  $36        $30   $66 
20.  TRAVEL  $1,330   $1,067   $1,284   $3,681 
21.  ENTERTAINMENT                 $0 
22.  REPAIRS & MAINTENANCE  $6,067   $3,613   $2,562   $12,242 
23.  SUPPLIES  $2,014   $7,443   $4,817   $14,275 
24.  ADVERTISING                 $0 
25.  OTHER (ATTACH LIST)  $686,581   $555,428   $826,841   $2,068,850 
26.  TOTAL OPERATING DISBURSEMENTS  $901,483   $813,366   $1,021,654   $2,736,503 
REORGANIZATION EXPENSES                    
27.  PROFESSIONAL FEES  $63,157   $544,050   $735,833   $1,343,040 
28.  U.S. TRUSTEE FEES  $9,750             $9,750 
29.  OTHER (ATTACH LIST)  $16,689   $38,987   $7,681   $63,357 
30.  TOTAL REORGANIZATION EXPENSES  $89,597   $583,037   $743,513   $1,416,147 
31.  TOTAL DISBURSEMENTS  $991,079   $1,396,403   $1,765,167   $4,152,649 
32.  NET CASH FLOW  $111,223   $2,101,934   $(1,693,126)  $520,031 
33.  CASH - END OF MONTH  $404,644   $2,506,578   $813,452      

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

CASH RECEIPTS AND DISBURSEMENTS  JANUARY   FEBRUARY   MARCH   QUARTER ENDED
MARCH 31, 2016		    
                       
NON-OPERATING RECEIPTS-LOANS AND ADVANCES                       
6.  Loan From Maturities (Dkt 1127)        $3,250,000        $3,250,000    
6.                    $-    
6.  Total Loans and Advances  $-   $3,250,000   $-   $3,250,000  
                           
NON-OPERATING RECEIPTS-OTHER                       
8.  Transfer From LPIFS Checking Acct# 4069  $500,000             $500,000    
8.  Transfer from LPHI Checking Acct# 3772  $150,000             $150,000    
8.  Interest Income  $3,864   $3,865   $3,616   $11,345    
8.  Miscellaneous Income-ATLES TESS Fee  $1,000             $1,000    
8.  Other Inc-dividends on pd out policies  $42        $46   $87    
8.  Other Income-Phoenix Life Ins. Settlement  $313,835             $313,835   1
8.  Reimbursements & Refunds-COBRA insurance  $977        $977   $1,954    
8.  Reimbursements & Refunds-Employee Advance       $25        $25    
8.  Reimbursements & Refunds-Utilities            $2,701   $2,701    
8.  Reimbursements & Refunds-Postage  $496        $28   $524    
8.  Reimbursements & Refunds-Other            $2,808   $2,808   2
8.  Total Other Non-Operating Receipts  $970,215   $3,890   $10,175   $984,280    
                           
OTHER OPERATING DISBURSEMENTS                       
25.  Premiums Advanced  $625,423   $449,227   $674,288   $1,748,938    
25.  Premiums-LPI Owned positions  $1,115   $25,584        $26,698    
25.  Bank Fees (Charged & Reversed)  $1,310   $566   $1,101   $2,977    
25.  BK Premiums  $287   $4,169        $4,456    
25.  Courier Services/Postage  $973   $1,604   $46,979   $49,556    
25.  Employee Relations       $373   $186   $559    
25.  Licenses & Fees  $842   $91   $180   $1,113    
25.  Medical Records  $2,760   $1,522   $857   $5,139    
25.  Medical Review Life Expectancy  $21,400   $19,575   $12,825   $53,800    
25.  Outside Services  $4,531   $8,288   $5,550   $18,369    
25.  Payroll-401K deductions  $10,755   $10,247   $9,561   $30,563    
25.  PES Operating Exp  $9,624   $21,674   $31,526   $62,824    
25.  Software Licenses & Support  $909   $2,650   $24,250   $27,809    
25.  Policy Administration Expense  $5,945   $4,171   $7,159   $17,276    
25.  Subscriptions  $258   $109   $2,279   $2,645    
25.  Trust Fees/Cost Reimbursement            $10,075   $10,075    
25.  Equipment Purchased       $5,577        $5,577    
25.  Employee Loan & Advances  $450        $25   $475    
25.  Total - Other Operating Disbursements  $686,581   $555,428   $826,841   $2,068,850    
                           
OTHER REORGANIZATION EXPENSES                       
29.  Relativity Hosting  $5,917   $8,293        $14,210    
29.  Trustee Travel Expense Reimbursement       $11,264        $11,264    
29.  Barbara Pope Contract Labor  $10,772   $19,430   $7,681   $37,883    
29.  Total - Other Reorganization Expenses  $16,689   $38,987   $7,681   $63,357    

 

1Funds received from class action lawsuit against Phoenix Life Insurance regarding COI increases.
2Refund of PES Operating Expenses.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-4

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

ACCOUNTS RECEIVABLE AGING  SCHEDULE
AMOUNT		   JANUARY   FEBRUARY   MARCH    
1.  0-30   $139,890   $485,798   $200,454   $611,360    
2.  31-60   $279,914   $424,553   $485,789   $200,445    
3.  61-90   $77,762   $206,293   $388,951   $485,789    
4.  91+   $12,721,787   $14,279,710   $14,547,915   $14,946,824    
5.  TOTAL ACCOUNTS RECEIVABLE  $13,219,353   $15,396,354   $15,623,109   $16,244,418   1
6.  AMOUNT CONSIDERED UNCOLLECTIBLE  $5,163,790   $5,483,317   $5,483,317   $5,483,317   1
7.  ACCOUNTS RECEIVABLE (NET)  $8,055,563   $9,913,037   $10,139,792   $10,761,101   1

 

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: March 2016

 

      0-30   31-60   61-90   91+     
TAXES PAYABLE  DAYS   DAYS   DAYS   DAYS   TOTAL 
1.  FEDERAL  $0                  $0 
2.  STATE  $0                  $0 
3.  LOCAL  $16,418   $73,496             $89,914 
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL TAXES PAYABLE  $16,418   $73,496   $0   $0   $89,914 
                             
6.  ACCOUNTS PAYABLE  $74,323   $108,398   $8,002   $561,281   $752,003 

 

STATUS OF POSTPETITION TAXES MONTH: March 2016

 

      BEGINNING   AMOUNT       ENDING    
      TAX   WITHHELD AND/   AMOUNT   TAX    
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY    
1.  WITHHOLDING   $0   $19,743   $19,743   $0  
2.  FICA-EMPLOYEE   $0   $11,929   $11,929   $0    
3.  FICA-EMPLOYER   $0   $11,929   $11,929   $0    
4.  UNEMPLOYMENT   $0   $197   $197   $0    
5.  INCOME   $0             $0    
6.  OTHER (ATTACH LIST)   $0             $0    
7.  TOTAL FEDERAL TAXES   $0   $43,798   $43,798   $0    
STATE AND LOCAL                       
8.  WITHHOLDING                  $0    
9.  SALES                  $0    
10.  EXCISE                  $0    
11.  UNEMPLOYMENT   $0   $3,011   $3,011   $0    
12.  REAL PROPERTY   $0             $0    
13.  PERSONAL PROPERTY   $84,441   $5,473        $89,914   2
14.  OTHER (ATTACH LIST)   $0             $0    
15.  TOTAL STATE & LOCAL   $84,441   $8,484   $3,011   $89,914    
16.  TOTAL TAXES   $84,441   $52,282   $46,810   $89,914    

 

1These amounts are reported in detail on SUPPLEMENT TO ACCRUAL BASIS-1 under Item 15. Other Assets.
2The figures shown here do not include $4,504.20 accrued for the prepetition period of Jan. 1, 2015 thru May 19, 2015 and include an adjustment to the calendar year 2015 tax accrual resulting from the taxing authority changing the valuation of the aircraft held on 1/1/15.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-5

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

       MONTH:   March 2016 
BANK RECONCILIATIONS                
   Account #1   Account #2   Account #3     
A.      BANK:  Bank of Texas   Bank of Texas         
B.      ACCOUNT NUMBER:  4080   4091        
C.      PURPOSE (TYPE):  Checking   Checking       TOTAL 
1.  BALANCE PER BANK STATEMENT   $97,194   $887,057        $984,251 
2.  ADD: TOTAL DEPOSITS NOT CREDITED   $2,600             $2,600 
3.  SUBTRACT: OUTSTANDING CHECKS   $39,317   $137,121        $176,438 
4.  OTHER RECONCILING ITEMS                  $0 
5.  MONTH END BALANCE PER BOOKS   $60,478   $749,935   $0   $810,413 
6.  NUMBER OF LAST CHECK WRITTEN    2044    1025           

 

INVESTMENT ACCOUNTS

 

   DATE OF   TYPE OF   PURCHASE   CURRENT 
BANK, ACCOUNT NAME & NUMBER  PURCHASE   INSTRUMENT   PRICE   VALUE 
7.  TD Bank, Life Partners, Inc. Acct 70-T202-01-2   unknown    MoneyMarket        $02
8.                       
9.                       
10.                       
11.   TOTAL INVESTMENTS          $0   $0 

 

CASH

 

12.    CURRENCY ON HAND           $ 3,039 1
                     
13.    TOTAL CASH - END OF MONTH           $ 813,452  
                         
1 Item 12. Currency On Hand includes:     Petty Cash   $ 1,000        
        PayPal   $ 1,809        
        Prepaid Visa   $ 230          

 

2Remaining balance of $7 paid out in January representing interest income. Account has $0 balance and is closed.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

  MONTH: March 2016

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF  AMOUNT   TOTAL PAID 
NAME  PAYMENT  PAID   TO DATE 
1.  Mark Embry  Salaries/Expense Reimbursement  $13,564   $136,828 
2.  Advance Trust & Life Escrow Svcs  Premium Remittance/Cost Reimb  $75,669   $533,681 
3.  Life Partners Holdings, Inc.  Rent & Return deposit in error       $113,565 
4.  LPI Financial Services, Inc.  Forward Platform Fees       $2,037 
5.  Purchase Escrow Services, LLC  Premium Remittance/Cost Reimb  $636,360   $4,459,401 
6.  Colette Pieper  Salaries/Expense Reimbursement  $13,962   $143,522 
7.  Debora J. Carr  Salaries/Expense Reimbursement  $3,750   $38,250 
8.  TOTAL PAYMENTS TO INSIDERS  $743,305   $5,427,284 

 

PROFESSIONALS2
      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  $955,564   $135,590   $955,564   $273,879 
2.  Bridgepoint Consulting  12/15/15  $898,979   $114,517   $898,979   $415,541 
3.  Epiq Bankruptcy Solutions  05/22/15  $3,290,276   $217,290   $2,892,313   $205,672 
4.  Forshey & Prostok, LLP  04/28/15  $154,409        $154,409   $0 
5.  Kevin Buchanan & Associates  07/01/15  $140,235        $140,235   $0 
6.  Kim Hinkle, Attorney at Law  12/15/15  $235,457   $20,053   $235,457   $72,532 
7.  MMS Advisors  03/25/16  $246,992             $246,992 
8.  Munsch, Hardt, Kopf & Harr, P.C.  12/15/15  $1,810,924   $137,121   $1,810,924   $871,023 
9.  Phillips Murrah  12/15/15  $174,638   $8,212   $174,638   $131,695 
10.  Pronske Goolsby & Kathman, P.C.  05/05/15  $128,618        $128,618   $0 
11.  Thompson & Knight, LLP  12/15/15  $8,304,511        $8,307,945   $5,382,2103
12.  Tom Moran, US Trustee  12/18/15  $11,850        $11,850   $785,9534
13.  Smith, Jackson, Boyer & Bovard, PLLC  12/18/15  $56,507   $1,308   $56,507   $6,733 
14.  Predictive Resources  11/19/15  $202,711   $38,194   $202,711   $186,942 
15.  D3G Capital Management LLC/Lewis & Ellis Inc  12/03/15  $152,460   $63,548   $152,460   $70,465 
16.  Barbara Pope  12/15/15  $42,477        $42,477   $05
17.  TOTAL PAYMENTS TO PROFESSIONALS          $735,833   $16,165,087   $8,649,637 

 

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.  Pitney Bowes Global Financial Services, LLC  $5,423   $0   $01
2.  Pitney Bowes Global Financial Services, LLC  $906   $0   $01
3.  Johnnies Office Systems, Inc.  $1,055   $1,055   $0 
4.  Great America Financial Services  $2,939   $2,939   $0 
5.  PJC Investments, LLC  $10,000   $10,000   $0 
6.  TOTAL  $20,323   $13,993   $0 

 

1These lease payments are quarterly, not monthly.
2Professional fee and expense allocations are estimated by each firm across the 3 debtors, and are booked accordingly in the books and records.  Payments are made based on cash availability and intercompany accounting.  The total of all aggregate unallocated fees and expenses for the 3 debtors are reflected in the schedule above.
3Total 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.
4Total Paid To Date excludes out-of-pocket expense reimbursements on behalf of subsidiary debtors.
5Amounts shown do not include employee/contractor payments.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-7

 

CASE NAME: Life Partners, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

  MONTH: March 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  
          X  

 

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

 

Questionnaire Item 5. Loans were recevied from maturities of Life Settlements per Docket 1127 related to financing.
Questionnaire Item 9. 2015 Property Taxes assessed on the airplane have not been paid pending request for the amount to be reduced.

 

 

 

 

 

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 
Workers Compensation  Service Lloyds Ins. Co.  06/14/2015- 06/14/2016  $316.00 /month 

 

 

LIFE PARTNERS HOLDINGS INC Reports