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

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EX-99.1 - EXHIBIT 99.1 - LIFE PARTNERS HOLDINGS INCv444593_ex99-1.htm

 

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:   June   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   7/20/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Paula Toy   Vice-President/Controller
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Paula Toy   7/20/2016
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		   APRIL   MAY   JUNE     
ASSETS                         
1.  UNRESTRICTED CASH  $295,821   $5,991,886   $4,090,619   $2,446,097      
2.  RESTRICTED CASH  $101,555   $0   $(0)  $(0)     
3.  TOTAL CASH  $397,376   $5,991,886   $4,090,619   $2,446,097      
4.  ACCOUNTS RECEIVABLE (NET)  $143,949   $106,096   $89,998   $68,498      
5.  INVENTORY                         
6.  NOTES RECEIVABLE  $8,912                     
7.  PREPAID EXPENSES  $343,387   $112,103   $101,248   $101,962    6 
8.  OTHER (ATTACH LIST)  $49,475   $53,665   $53,545   $61,539      
9.  TOTAL CURRENT ASSETS  $943,098   $6,263,750   $4,335,410   $2,678,096      
10.  PROPERTY, PLANT & EQUIPMENT       $1,979,129   $1,979,129   $1,979,129      
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION       $(1,872,483)  $(1,876,396)  $(1,880,310)     
12.  NET PROPERTY, PLANT & EQUIPMENT  $299,672   $106,647   $102,733   $98,820      
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   $16,840,242   $17,268,742   $17,923,169      
16.  TOTAL ASSETS  $89,685,300   $23,210,639   $21,706,885   $20,700,085      
POSTPETITION LIABILITIES                      
17.  ACCOUNTS PAYABLE       $1,082,214   $1,893,947   $2,051,966    4 
18.  TAXES PAYABLE       $146,548   $101,343   $106,912    5 
19.  NOTES PAYABLE       $0   $0   $0      
20.  PROFESSIONAL FEES       $5,748,914   $5,931,577   $7,213,519    4&7 
21.  SECURED DEBT       $0   $0   $0      
22.  OTHER (ATTACH LIST)       $30,576,089   $30,459,419   $30,166,039      
23.  TOTAL POSTPETITION LIABILITIES       $37,553,765   $38,386,286   $39,538,437      
PREPETITION LIABILITIES                      
24.  SECURED DEBT   undetermined   $4,504   $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   $691,092   $691,092   $691,092      
29.  TOTAL LIABILITIES  $9,203,450   $38,244,858   $39,077,379   $40,229,529      
EQUITY                      
30.  PREPETITION OWNERS' EQUITY        $78,978,770   $78,978,770   $78,978,770      
31.  POSTPETITION CUMULATIVE
PROFIT OR (LOSS)		       $(23,229,476)  $(25,233,878)  $(27,308,049)     
32.  DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)		       $(70,783,514)  $(71,115,385)  $(71,198,657)   1 
33.  TOTAL EQUITY       $(15,034,219)  $(17,370,493)  $(19,527,936)     
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $23,210,639   $21,706,885   $20,701,594      

 

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.  $78,406,300.72 
Due from LPHI Management Services  $11,719.74 
Due to LPI Financial Services, Inc.  $(7,219,363.79)
   $71,198,656.67 

2Item 24. Secured Debt is accrued property taxes for the prepetition period of Jan. 1, 2015 thru May 19, 2015 related to the airplane.  
4Item 17. Accounts Payable includes $1,959,844.76 of invoices from bankruptcy professionals that would otherwise be included in Item 20. Professional Fees.  
5Item 18. Taxes Payable includes 2015 property tax accessed on the airplane which remains unpaid.  
6Item 7. Prepaid Expenses includes $18,649.30 postage purchased for upcoming mailouts.  
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		   APRIL   MAY   JUNE   
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   $8,000   
8.  Notes Receivable-Employee  $477   $596   $476   $470   
8.                         
8.  TOTAL - OTHER CURRENT ASSETS  $49,475   $53,665   $53,545   $61,539   
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. OTHER ASSETS                   
15.  TDL, LLC Misappropriation of Foreign Exchange Funds  $257,395                  
15.  Advance on Premiums paid by PES on behalf of investors  $13,083,062   $16,444,254   $16,840,949   $17,396,547   
15.  Advance on Premiums paid by ATLES on behalf of investors  $136,291   $733,954   $751,058   $823,657   
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       $377,429   $392,129   $418,360   
15.  Deposits       $11,912   $11,912   $11,912   
15.  TOTAL - OTHER ASSETS  $13,513,629   $16,840,242   $17,268,742   $17,923,169   
                          
POSTPETITION LIABILITIES                   
22.  Accrued Payroll       $130,970   $13,634   $35,391   
22.  Accrued Vacation       $77,438   $77,532   $76,319   
22.  Accrued 401K       $3,412   $3,343   $1,211   
22.  401K Loan       $863   $854   $298   
22.  US Trustee Fees       $22,055   $22,705   $25,305  3
22.  Phoenix Life Insurance Settlement       $313,835   $313,835   $0  2
22.  Loan From Maturities (Dkt 1127)       $25,000,000   $25,000,000   $25,000,000   
22.  Deferred Revenue       $5,027,515   $5,027,515   $5,027,515   
22  TOTAL - OTHER POSTPETITION LIABILITIES       $30,576,089   $30,459,419   $30,166,039   

 

1Sold pursuant to court order Dkt.1053  
2Funds received from class action lawsuit against Phoenix Life Insurance regarding COI increases. These funds were distributed to position holder escrow accounts in June.  
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  MARCH   APRIL   MAY   JUNE   
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  $13,307   $12,748   $13,808   $11,801   
7.  TOTAL COST OF GOODS SOLD  $13,307   $12,748   $13,808   $11,801   
8.  GROSS PROFIT  $(13,307)  $(12,748)  $(13,808)  $(11,801)  
OPERATING EXPENSES                     
9.  OFFICER / INSIDER COMPENSATION  $30,908   $114,842   $14,808   $20,347  2
10.  SELLING & MARKETING  $0   $0   $0   $0   
11.  GENERAL & ADMINISTRATIVE  $264,894   $217,736   $228,696   $206,832   
12.  RENT & LEASE  $14,148   $19,603   $17,054   $16,148   
13.  OTHER (ATTACH LIST)  $(8,799)  $13,014   $19,006   $14,856   
14.  TOTAL OPERATING EXPENSES  $301,151   $365,195   $279,563   $258,183   
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(314,458)  $(377,943)  $(293,371)  $(269,984)  
OTHER INCOME & EXPENSES                     
16.  NON-OPERATING INCOME (ATTACH LIST)  $(3,591)  $(6,689)  $(389)  $(4,024) 1
17.  NON-OPERATING EXPENSE (ATTACH LIST)  $0   $0   $0   $0   
18.  INTEREST EXPENSE  $0   $0   $0   $18   
19.  DEPRECIATION / DEPLETION  $3,874   $3,914   $3,914   $3,914   
20.  AMORTIZATION  $0   $0   $0   $0   
21.  OTHER (ATTACH LIST)  $0   $0   $0   $0   
22.  NET OTHER INCOME & EXPENSES  $283   $(2,775)  $3,525   $(92)  
REORGANIZATION EXPENSES                     
23.  PROFESSIONAL FEES  $1,902,488   $1,909,503   $1,696,771   $1,794,434   
24.  U.S. TRUSTEE FEES  $3,900   $9,750   $650   $2,600   
25.  OTHER (ATTACH LIST)  $6,404   $13,917   $10,086   $7,245   
26.  TOTAL REORGANIZATION EXPENSES  $1,912,792   $1,933,170   $1,707,507   $1,804,279   
27.  INCOME TAX                      
28.  NET PROFIT (LOSS)  $(2,227,534)  $(2,308,338)  $(2,004,403)  $(2,074,171)  

 

1See Supplement To Accrual Basis-2.
2April Officer/Insider Compensation includes $99,380.99 severance for a former officer. It does not include $13,787.08 of vacation offset against accrued vacation.

 

 

 

  

  Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-2

 

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

  

INCOME STATEMENT  MARCH   APRIL   MAY   JUNE   
OTHER OPERATING EXPENSES                     
13.  Other Expense- Premium Expense  $(8,162)  $13,014   $19,006   $14,856  1
13.  Other Expense- BK Premiums  $(637)  $-   $-   $-  1
13.  Legal & Professional Expense                      
13.  TOTAL - OTHER OPERATING EXPENSE  $(8,799)  $13,014   $19,006   $14,856   
NON-OPERATING INCOME                     
16.  Interest Income  $3,618   $2   $0   $3,864   
16.  Gain on Sale of Egyptian Replicas                      
16.  Gain on Sale of Assets                      
16.  Other Income  $(27)  $6,687   $388   $160  2
16.  TOTAL NON-OPERATING INCOME  $3,591   $6,689   $389   $4,024   
NON-OPERATING EXPENSE                     
17.     $-   $-   $-   $-   
17.                         
17.                         
17.                         
17.  TOTAL NON-OPERATING EXPENSE  $-   $-   $-   $-   
OTHER EXPENSE                     
21.  Franchise Tax  $-   $-   $-   $-   
21.  State Income Tax-Other  $-   $-   $-   $-   
21.                         
21.  TOTAL OTHER EXPENSE  $-   $-   $-   $-   
OTHER REORGANIZATION EXPENSES                     
25.  Transcription Services       $392   $384   $155   
25.  Relativity Hosting  $6,404   $5,940   $6,000   $3,363   
25.  Trustee Travel Expense       $7,585   $3,702   $3,727   
25.  Barbara Pope Contract Labor                      
25.  TOTAL OTHER REORGANIZATION EXP  $6,404   $13,917   $10,086   $7,245   

  

1March's credit is the result of reclassifying to accounts receivable premiums that were expensed in prior months.
2April includes payment for Unclaimed Property received from the state.

 

 

 

  

Monthly Operating Report
ACCRUAL BASIS-3

 

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

 

CASH RECEIPTS AND DISBURSEMENTS  APRIL   MAY   JUNE   QUARTER ENDED
JUNE 30, 2016		  
1.  CASH - BEGINNING OF MONTH  $813,452   $5,991,886   $4,090,619       
RECEIPTS FROM OPERATIONS                    
2.  CASH SALES                 $0  
COLLECTION OF ACCOUNTS RECEIVABLE                    
3.  PREPETITION            $21,500   $21,500 4
4.  POSTPETITION  $71   $174,624   $(600)  $174,094 5
5.  TOTAL OPERATING RECEIPTS  $71   $174,624   $20,900   $195,594  
NON-OPERATING RECEIPTS                    
6.  LOANS & ADVANCES (ATTACH LIST)  $7,921,515             $7,921,515  
7.  SALE OF ASSETS                 $0  
8.  OTHER (ATTACH LIST)  $28,808   $908   $5,434   $35,150  
9.  TOTAL NON-OPERATING RECEIPTS  $7,950,323   $908   $5,434   $7,956,665  
10.  TOTAL RECEIPTS  $7,950,394   $175,532   $26,334   $8,152,259  
11.  TOTAL CASH AVAILABLE  $8,763,846   $6,167,417   $4,116,953       
OPERATING DISBURSEMENTS                    
12.  NET PAYROLL  $98,937   $221,518   $102,979   $423,434 1
13.  PAYROLL TAXES PAID  $38,572   $83,221   $34,054   $155,847 2
14.  SALES, USE & OTHER TAXES PAID            $18   $18  
15.  SECURED / RENTAL / LEASES  $19,603   $17,054   $16,148   $52,805  
16.  UTILITIES  $7,317   $5,754   $5,739   $18,810  
17.  INSURANCE  $49,792   $23,134   $55,100   $128,026 3
18.  INVENTORY PURCHASES                 $0  
19.  VEHICLE EXPENSES  $123   $1,698   $40   $1,862  
20.  TRAVEL  $1,175   $869   $1,438   $3,482  
21.  ENTERTAINMENT                 $0  
22.  REPAIRS & MAINTENANCE  $3,090   $5,818   $3,931   $12,839  
23.  SUPPLIES  $2,102   $1,436   $1,756   $5,294  
24.  ADVERTISING                 $0  
25.  OTHER (ATTACH LIST)  $1,002,759   $654,548   $993,419   $2,650,726  
26.  TOTAL OPERATING DISBURSEMENTS  $1,223,471   $1,015,049   $1,214,623   $3,453,143  
REORGANIZATION EXPENSES                    
27.  PROFESSIONAL FEES  $1,524,029   $1,039,144   $445,872   $3,009,045  
28.  U.S. TRUSTEE FEES  $9,750             $9,750  
29.  OTHER (ATTACH LIST)  $14,710   $22,605   $10,362   $47,677  
30.  TOTAL REORGANIZATION EXPENSES  $1,548,490   $1,061,749   $456,233   $3,066,472  
31.  TOTAL DISBURSEMENTS  $2,771,960   $2,076,798   $1,670,856   $6,519,614  
32.  NET CASH FLOW  $5,178,433   $(1,901,266)  $(1,644,522)  $1,632,645  
33.  CASH - END OF MONTH  $5,991,886   $4,090,619   $2,446,097       

 

1Net Payroll for May includes $84,556.59 severance and vacation paid to a former officer.
2Payroll Taxes Paid for May includes $28,611.48 employee payroll taxes and $5,977.87 empoyer payroll taxes paid on severance and vacation paid to a former officer.
3June 2016 insurance includes $32,116.09 paid for D&O insurance normally paid by LPHI.
4Receipt of payment on settlement with Jacobowitz Family Trust per Docket 2126.
5This corrects a receipt classified here in May 2016.

 

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

 

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

 

CASH RECEIPTS AND DISBURSEMENTS  APRIL   MAY   JUNE   QUARTER ENDED
JUNE 30, 2016		  
                     
NON-OPERATING RECEIPTS-LOANS AND ADVANCES                     
6.  Loan From Maturities (Dkt 1127)  $7,921,515             $7,921,515  
6.                    $-  
6.  Total Loans and Advances  $7,921,515   $-   $-   $7,921,515  
                         
NON-OPERATING RECEIPTS-OTHER                     
8.  Flow Thru Premiums & Platform Fees  $600   $600   $600   $1,800  
8.  Interest Income       $102   $4,020   $4,122  
8.  Other Inc-dividends on pd out policies            $4   $4  
8.  Return of retainer  $21,170             $21,170  
8.  Reimbursements & Refunds-COBRA insurance  $351        $29   $380  
8.  Reimbursements & Refunds-Unclaimed Property  $6,687             $6,687  
8.  Reimbursements & Refunds-Utilities       $206        $206  
8.  Reimbursements & Refunds-Postage            $584   $584  
8.  Reimbursements & Refunds-Other            $196   $196  
8.  Total Other Non-Operating Receipts  $28,808   $908   $5,434   $35,150  
                         
OTHER OPERATING DISBURSEMENTS                     
25.  Premiums Advanced  $946,068   $591,332   $569,617   $2,107,017  
25.  Premiums-LPI Owned positions  $14,027   $14,700   $21,514   $50,241  
25.  Bank Fees (Charged & Reversed)  $807   $1,982   $5,134   $7,923 1
25.  Premiums-BK, Texas AG &Others            $11,470   $11,470  
25.  Courier Services/Postage  $1,352   $2,010   $1,164   $4,526  
25.  Flow Thru Premiums  $600   $600   $600   $1,800  
25.  Legal Retainer       $3,000        $3,000 2
25.  Licenses & Fees  $376   $140   $256   $772  
25.  Medical Records  $1,454   $3,718   $1,813   $6,986  
25.  Medical Review Life Expectancy  $2,350   $1,350        $3,700  
25.  Outside Services  $6,472   $3,981   $4,882   $15,335  
25.  Payroll Garnishment            $303   $303  
25.  Payroll-401K deductions  $9,236   $8,508   $12,736   $30,480  
25.  PES Operating Exp            $863   $863  
25.  Software Licenses & Support       $2,800   $10,561   $13,362  
25.  Policy Administration Expense  $9,658   $9,875   $28,661   $48,194  
25.  Subscriptions  $309   $551   $10   $870  
25.  Trust Fees/Cost Reimbursement  $10,050   $10,000   $10,000   $30,050  
25.  Distribution of Phoenix Life Insurance Settlement            $313,835   $313,835 3
25.  Equipment Purchased                 $-  
25.  Employee Loan & Advances                 $-  
25.  Total - Other Operating Disbursements  $1,002,759   $654,548   $993,419   $2,650,726  
                         
OTHER REORGANIZATION EXPENSES                     
29.  Transcription Services  $392   $384        $776  
29.  Relativity Hosting  $9,098   $13,332   $5,703   $28,133  
29.  Trustee Travel Expense Reimbursement  $5,221   $8,888   $4,659   $18,767  
29.  Barbara Pope Contract Labor                 $-  
29.  Privilege Log Export                 $-  
29.  Total - Other Reorganization Expenses  $14,710   $22,605   $10,362   $47,677  

 

1June 2016 includes $3,000 Bank Escrow Fees.
2Retainer paid to Jardim, Meisner & Susser for assistance with obtaining death certificate from the state of New Jersey.
3See SUPPLEMENT TO ACCRUAL BASIS-1 Footnote 2.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-4

 

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

 

ACCOUNTS RECEIVABLE AGING  SCHEDULE
AMOUNT		   APRIL   MAY   JUNE 
1.  0-30  $139,890   $942,114   $413,824   $627,301 
2.  31-60  $279,914   $609,329   $943,516   $414,998 
3.  61-90  $77,762   $200,445   $608,500   $943,516 
4.  91+  $12,721,787   $15,426,320   $15,626,167   $16,234,389 
5.  TOTAL ACCOUNTS RECEIVABLE  $13,219,353   $17,178,208   $17,592,007   $18,220,2041
6.  AMOUNT CONSIDERED UNCOLLECTIBLE  $5,163,790   $5,483,317   $5,483,317   $5,483,3171
7.  ACCOUNTS RECEIVABLE (NET)  $8,055,563   $11,694,890   $12,108,690   $12,736,8871

 

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: June 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  $33,416             $73,496   $106,9122
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL TAXES PAYABLE  $33,416   $0   $0   $73,496   $106,912 
                             
6.  ACCOUNTS PAYABLE  $85,082   $168,825   $795,024   $1,003,035   $2,051,966 

 

STATUS OF POSTPETITION TAXES MONTH: June 2016

 

      BEGINNING   AMOUNT       ENDING 
      TAX   WITHHELD AND/   AMOUNT   TAX 
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY 
1.  WITHHOLDING   $0   $21,666   $21,666   $0 
2.  FICA-EMPLOYEE   $0   $14,136   $14,136   $0 
3.  FICA-EMPLOYER   $0   $14,136   $14,136   $0 
4.  UNEMPLOYMENT   $0             $0 
5.  INCOME   $0             $0 
6.  OTHER (ATTACH LIST)   $0             $0 
7.  TOTAL FEDERAL TAXES   $0   $49,937   $49,937   $0 
STATE AND LOCAL                    
8.  WITHHOLDING                  $0 
9.  SALES                  $0 
10.  EXCISE                  $0 
11.  UNEMPLOYMENT   $0             $0 
12.  REAL PROPERTY   $0             $0 
13.  PERSONAL PROPERTY   $101,343   $5,569        $106,9122
14.  OTHER (ATTACH LIST)   $0             $0 
15.  TOTAL STATE & LOCAL   $101,343   $5,569   $0   $106,912 
16.  TOTAL TAXES   $101,343   $55,506   $49,937   $106,912 

 

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. Taxes Payable older than 91 days are property taxes assessed on the airplane pending request for the tax to be reduced.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-5

 

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

 

  MONTH:   June 2016
BANK RECONCILIATIONS    

 

      Account #1   Account #2   Account #3     
A. BANK:  Bank of Texas   Bank of Texas         
B. ACCOUNT NUMBER:  4080   4091       TOTAL 
C. PURPOSE (TYPE):  Checking   Checking         
1.  BALANCE PER BANK STATEMENT   $2,642,410   $68,933        $2,711,343 
2.  ADD: TOTAL DEPOSITS NOT CREDITED   $2,498   $111        $2,609 
3.  SUBTRACT: OUTSTANDING CHECKS   $200,755   $69,043        $269,799 
4.  OTHER RECONCILING ITEMS                  $0 
5.  MONTH END BALANCE PER BOOKS   $2,444,153   $0   $0   $2,444,153 
6.  NUMBER OF LAST CHECK WRITTEN    2420    2293           

 

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  $1,9441
         
13.  TOTAL CASH - END OF MONTH  $2,446,097 

 

1  Item 12. Currency On Hand includes:  Petty Cash  $600         
      PayPal  $1,150         
      Prepaid Visa  $195         

 

2Account has $0 balance and is closed.
3Bank Accounts holding funds in trust from PES for premium escrows and maturities:

 

Cash Accounts    
Premiums Collection Acct # 2016 (sweeps to acct #0027)  $23,368.78 
Premium Escrow Account FHPREA #0027  $10,864,268.03 
Maturities Account MEA #0019  $13,564,188.45 
   $24,451,825.26 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

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

 

  MONTH:   June 2016

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF  AMOUNT   TOTAL PAID 
NAME  PAYMENT  PAID   TO DATE 
1.  Mark Embry  Salaries/Expense Reimbursement  $20,633   $186,330 
2.  Advance Trust & Life Escrow Svcs  Premium Remittance/Cost Reimb  $248,702   $1,200,793 
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  $863   $4,460,263 
6.  Colette Pieper  Salaries/Expense Reimbursement  $0   $263,671 
7.  Debora J. Carr  Salaries/Expense Reimbursement  $5,875   $51,625 
8.  TOTAL PAYMENTS TO INSIDERS     $276,073   $6,278,284 

 

PROFESSIONALS

2
      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  $1,134,925   $56,998   $1,134,925   $449,391 
2.  Bridgepoint Consulting  12/15/15  $1,125,686   $76,009   $1,125,686   $562,585 
3.  Epiq Bankruptcy Solutions  05/22/15  $3,707,788   $198,318   $3,500,271   $232,517 
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  $286,299   $13,236   $286,299   $92,558 
7.  MMS Advisors  03/25/16  $246,992        $246,992   $0 
8.  Munsch, Hardt, Kopf & Harr, P.C.  12/15/15  $1,989,216        $1,989,216   $1,365,978 
9.  Phillips Murrah  12/15/15  $257,940   $20,488   $257,940   $162,682 
10.  Pronske Goolsby & Kathman, P.C.  05/05/15  $128,618        $128,618   $0 
11.  Thompson & Knight, LLP  12/15/15  $9,567,162        $9,567,162   $8,597,414 
12.  Tom Moran, US Trustee  12/18/15  $11,850        $11,850   $1,003,4493
13.  Smith, Jackson, Boyer & Bovard, PLLC  12/18/15  $57,305        $57,305   $9,811 
14.  Predictive Resources  11/19/15  $361,206   $63,742   $361,206   $119,938 
15.  D3G Capital Management LLC/Lewis & Ellis Inc  12/03/15  $169,540   $17,080   $169,540   $53,385 
16.  Barbara Pope  12/15/15  $42,477        $42,477   $04
17.  Sutherland Asbill & Brennan LLP  12/15/15  $0             $39,749 
18.  TOTAL PAYMENTS TO PROFESSIONALS          $445,872   $19,174,132   $12,689,457 

 

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   $12,000   $0 
6.  TOTAL   $20,323   $15,993   $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 excludes out-of-pocket expense reimbursements on behalf of subsidiary debtors.
4Amounts 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:   June 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.
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.   06/14/2016- 06/14/2017   $ 330.00  /month  

 

 

LIFE PARTNERS HOLDINGS INC Reports