LIFE PARTNERS HOLDINGS INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - November 21, 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:   October   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   11/21/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Paula Toy   Vice-President/Controller
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Paula Toy   11/21/2016
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		   AUGUST   SEPTEMBER   OCTOBER     
ASSETS                         
1.  UNRESTRICTED CASH  $295,821   $4,730,558   $4,645,653   $2,548,238      
2.  RESTRICTED CASH  $101,555   $0   $0   $0      
3.  TOTAL CASH  $397,376   $4,730,558   $4,645,653   $2,548,238      
4.  ACCOUNTS RECEIVABLE (NET)  $143,949   $25,498   $3,998   $3,998      
5.  INVENTORY                         
6.  NOTES RECEIVABLE  $8,912                     
7.  PREPAID EXPENSES  $343,387   $94,907   $92,218   $98,179    6 
8.  OTHER (ATTACH LIST)  $49,475   $53,539   $53,539   $53,539      
9.  TOTAL CURRENT ASSETS  $943,098   $4,904,503   $4,795,409   $2,703,955      
10.  PROPERTY, PLANT & EQUIPMENT       $1,979,129   $1,979,129   $1,979,129      
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION       $(1,888,137)  $(1,892,051)  $(1,895,964)     
12.  NET PROPERTY, PLANT & EQUIPMENT  $299,672   $90,992   $87,079   $83,165      
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   $17,839,230   $18,569,052   $19,748,608      
16.  TOTAL ASSETS  $89,685,300   $22,834,725   $23,451,539   $22,535,728      
POSTPETITION LIABILITIES                         
17.  ACCOUNTS PAYABLE       $4,149,446   $5,014,477   $6,628,034    4 
18.  TAXES PAYABLE       $118,051   $138,310   $143,032    5 
19.  NOTES PAYABLE       $0   $0   $0      
20.  PROFESSIONAL FEES       $6,527,236   $6,615,576   $6,390,560    4&7 
21.  SECURED DEBT       $0   $0   $0      
22.  OTHER (ATTACH LIST)       $38,373,235   $42,074,593   $42,280,279      
23.  TOTAL POSTPETITION LIABILITIES       $49,167,969   $53,842,956   $55,441,905      
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   $49,859,061   $54,534,048   $56,132,997      
EQUITY                         
30.  PREPETITION OWNERS' EQUITY       $78,978,770   $78,978,770   $78,978,770      
31.  POSTPETITION CUMULATIVE PROFIT OR (LOSS)       $(33,503,557)  $(36,744,422)  $(38,607,450)     
32.  DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)       $(72,499,549)  $(73,316,857)  $(73,968,589)   1 
33.  TOTAL EQUITY       $(27,024,336)  $(31,082,509)  $(33,597,269)     
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $22,834,725   $23,451,539   $22,535,728      

 

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.  $82,210,396.38 
Due from LPHI Management Services  $11,719.74 
Due to LPI Financial Services, Inc.  $(8,253,526.73)
   $73,968,589.39 

 

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 $6,332,399.29 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 $11,971.46 postage purchased for 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		   AUGUST   SEPTEMBER   OCTOBER   
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   $470   $470   $470    
8.                          
8.  TOTAL - OTHER CURRENT ASSETS  $49,475   $53,539   $53,539   $53,539    
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   $16,902,807   $17,338,479   $17,589,496   3
15.  Advance on Premiums paid by ATLES on behalf of investors  $136,291   $1,200,579   $1,471,102   $1,819,335   3
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       $451,239   $474,866   $1,056,949   3
15.  Deposits       $11,912   $11,912   $10,134    
15.  TOTAL - OTHER ASSETS  $13,513,629   $17,839,230   $18,569,052   $19,748,608    
                           
POSTPETITION LIABILITIES                      
22.  Accrued Payroll       $48,216   $43,568   $47,527    
22.  Accrued Vacation       $70,762   $72,163   $67,628    
22.  Accrued 401K       $2,699   $3,357   $3,180    
22.  401K Loan       $596   $745   $632    
22.  Child Support & PR Garnishment       $0   $150   $154    
22.  US Trustee Fees       $28,555   $28,555   $28,555    
22.  Phoenix Life Insurance Settlement       $0   $0   $0    
22.  Loan From Maturities (Dkt 1127)       $25,000,000   $25,000,000   $25,000,000    
22.  DIP Loan from Vida Capital (Dkt 2924)       $7,000,000   $10,000,000   $10,000,000    
22.  Interest Payable on Loan From Maturities & DIP Financing       $1,194,893   $1,898,539   $2,105,088   2
22.  Deferred Revenue       $5,027,515   $5,027,515   $5,027,515    
22  TOTAL - OTHER POSTPETITION LIABILITIES       $38,373,235   $42,074,593   $42,280,279    

 

1Sold pursuant to court order Dkt.1053
2September Interest Payable includes an adjustment of $449,498.51 to recalculate the estimated interest accrual. After this adjustment, still subject to review, Interest Payable on the Loan from Maturities & DIP Financing is estimated as shown below:

 

November 2015  $60,497.94   May 2016  $212,331.44 
December 2015  $130,012.52   June 2016  $205,474.16 
January 2016  $117,446.31   July 2016  $212,330.96 
February 2016  $134,803.13   August 2016  $238,329.12 
March 2016  $145,048.10   September 2016  $254,148.09 
April 2016  $188,117.54   October 2016  $281,215.30 

 

3Includes $562,801.27 reclassified from Advance on Premiums paid by PES & ATLES to Capitalized Premiums on positions owned.

 

 

 

 

 

 Monthly Operating Report
  ACCRUAL BASIS-2

 

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

 

INCOME STATEMENT  JULY   AUGUST   SEPTEMBER   OCTOBER   
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  $15,438   $19,089   $16,615   $14,621    
7.  TOTAL COST OF GOODS SOLD  $15,438   $19,089   $16,615   $14,621    
8.  GROSS PROFIT  $(15,438)  $(19,089)  $(16,615)  $(14,621)   
OPERATING EXPENSES                       
9.  OFFICER / INSIDER COMPENSATION  $37,406   $34,414   $32,917   $31,421    
10.  SELLING & MARKETING  $0   $0   $0   $0    
11.  GENERAL & ADMINISTRATIVE  $205,923   $179,373   $188,001   $157,581    
12.  RENT & LEASE  $21,571   $16,472   $16,660   $17,747   3
13.  OTHER (ATTACH LIST)  $12,248   $19,307   $220,198   $26,647    
14.  TOTAL OPERATING EXPENSES  $277,149   $249,566   $457,777   $233,396    
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(292,587)  $(268,656)  $(474,392)  $(248,017)   
OTHER INCOME & EXPENSES                       
16.  NON-OPERATING INCOME (ATTACH LIST)  $(221)  $(292)  $(310)  $(375)  1
17.  NON-OPERATING EXPENSE (ATTACH LIST)  $0   $0   $0   $0    
18.  INTEREST EXPENSE  $956,566   $238,327   $703,647   $281,215   2
19.  DEPRECIATION / DEPLETION  $3,914   $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  $960,258   $241,949   $707,250   $284,754    
REORGANIZATION EXPENSES                       
23.  PROFESSIONAL FEES  $2,165,672   $2,185,018   $2,040,550   $1,057,488    
24.  U.S. TRUSTEE FEES  $6,500   $6,500   $0   $9,750    
25.  OTHER (ATTACH LIST)  $22,384   $45,985   $18,673   $263,019    
26.  TOTAL REORGANIZATION EXPENSES  $2,194,557   $2,237,502   $2,059,223   $1,330,257    
27.  INCOME TAX                       
28.  NET PROFIT (LOSS)  $(3,447,402)  $(2,748,107)  $(3,240,865)  $(1,863,028)   

 

1See Supplement To Accrual Basis-2.
2September Interest Expense includes September interest of $254,148.09 plus an adjustment of $449,498.51 for the change to calculation of interest for prior months as explained in Supplement to Accrual Basis-1, Footnote 2.
3Item 12. Rent & Lease July figures include $5,423.33 for the quarterly lease of mail inserter machine.

 

 

 

 

 

 Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-2

 

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

 

INCOME STATEMENT  JULY   AUGUST   SEPTEMBER   OCTOBER   
OTHER OPERATING EXPENSES                       
13.  Other Expense- Premium Expense  $4,761   $19,307   $220,198   $26,647   1
13.  Other Expense- BK Premiums  $-   $-   $-   $-    
13.  Legal & Professional Expense  $7,487   $-   $-   $-    
13.  TOTAL - OTHER OPERATING EXPENSE  $12,248   $19,307   $220,198   $26,647    
NON-OPERATING INCOME                       
16.  Interest Income  $-   $-   $-   $-    
16.  Gain on Sale of Egyptian Replicas                       
16.  Gain on Sale of Assets                       
16.  Other Income  $221   $292   $310   $375    
16.  TOTAL NON-OPERATING INCOME  $221   $292   $310   $375    
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       $9,195   $5,506   $2,056    
25.  Relativity Hosting  $4,325   $4,563   $4,563   $4,560    
25.  Termination Fee per Dkt 3336                 $250,000    
25.  Trustee Travel Expense  $3,333   $4,294   $5,137   $6,403    
25.  TownHall Meeting Expenses  $14,726   $27,933   $3,468         
25.  Barbara Pope Contract Labor                       
25.  TOTAL OTHER REORGANIZATION EXP  $22,384   $45,985   $18,673   $263,019    

 

1Item 13. Premium Expense for September 2016 includes a $211,585.57 write off of the receivable for premiums advanced on Texas AG policies.

 

 

 

 

 

 Monthly Operating Report
  ACCRUAL BASIS-3

 

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

 

CASH RECEIPTS AND DISBURSEMENTS  AUGUST   SEPTEMBER   QUARTER ENDED
SEPTEMBER 30, 2016		   OCTOBER   
1.  CASH - BEGINNING OF MONTH  $681,334   $4,730,558        $4,645,653    
RECEIPTS FROM OPERATIONS                      
2.  CASH SALES            $0         
COLLECTION OF ACCOUNTS RECEIVABLE                      
3.  PREPETITION  $21,500   $21,500   $64,500        1
4.  POSTPETITION  $1,380,981        $1,380,981   $45   2
5.  TOTAL OPERATING RECEIPTS  $1,402,481   $21,500   $1,445,481   $45    
NON-OPERATING RECEIPTS                      
6.  LOANS & ADVANCES (ATTACH LIST)  $7,000,000   $3,000,000   $10,000,000         
7.  SALE OF ASSETS            $0         
8.  OTHER (ATTACH LIST)  $1,403,195   $2,134   $1,406,238   $975    
9.  TOTAL NON-OPERATING RECEIPTS  $8,403,195   $3,002,134   $11,406,238   $975    
10.  TOTAL RECEIPTS  $9,805,676   $3,023,634   $12,851,719   $1,020    
11.  TOTAL CASH AVAILABLE  $10,487,010   $7,754,192        $4,646,673    
OPERATING DISBURSEMENTS                      
12.  NET PAYROLL  $88,946   $86,086   $261,018   $86,881    
13.  PAYROLL TAXES PAID  $31,522   $29,286   $94,717   $29,075    
14.  SALES, USE & OTHER TAXES PAID            $150         
15.  SECURED / RENTAL / LEASES  $16,472   $16,148   $54,192   $22,478    
16.  UTILITIES  $10,193   $5,965   $24,594   $7,660    
17.  INSURANCE  $25,947   $20,763   $70,012   $22,844    
18.  INVENTORY PURCHASES            $0         
19.  VEHICLE EXPENSES  $790   $18   $847   $56    
20.  TRAVEL  $3,149   $751   $4,757   $1,160    
21.  ENTERTAINMENT            $0         
22.  REPAIRS & MAINTENANCE  $4,252   $3,515   $10,814   $3,670    
23.  SUPPLIES  $2,546   $2,156   $5,898   $3,299    
24.  ADVERTISING            $0         
25.  OTHER (ATTACH LIST)  $760,572   $1,289,919   $2,797,715   $1,339,868   3
26.  TOTAL OPERATING DISBURSEMENTS  $944,390   $1,454,607   $3,324,715   $1,516,991    
REORGANIZATION EXPENSES                      
27.  PROFESSIONAL FEES  $4,801,149   $1,629,772   $7,272,488   $553,590    
28.  U.S. TRUSTEE FEES            $9,750   $9,750    
29.  OTHER (ATTACH LIST)  $10,913   $24,160   $45,210   $18,104    
30.  TOTAL REORGANIZATION EXPENSES  $4,812,062   $1,653,932   $7,327,448   $581,444    
31.  TOTAL DISBURSEMENTS  $5,756,452   $3,108,539   $10,652,163   $2,098,435   3
32.  NET CASH FLOW  $4,049,224   $(84,905)  $2,199,556   $(2,097,415)   
33.  CASH - END OF MONTH  $4,730,558   $4,645,653        $2,548,238    

 

1Receipt of payment on settlement with Jacobowitz Family Trust per Docket 2126.
2This is premiums advanced that were recouped shown under Item 15. Other Assets on Accrual Basis-1. We are unable to determine the allocation of this amount between prepetition and postpetition.
3September Disbursements includes $275,000 that is not a disbursement, but is the transfer of cash to the bank account of Life Partners Holdings, Inc.

 

 

 

  

  Monthly Operating Report
  SUPPLEMENT TO
  ACCRUAL BASIS-3

 

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

 

CASH RECEIPTS AND DISBURSEMENTS  AUGUST   SEPTEMBER   QUARTER ENDED
SEPTEMBER 30, 2016		   OCTOBER     
                        
NON-OPERATING RECEIPTS-LOANS AND ADVANCES                        
6.  Loan From Maturities (Dkt 1127)            $-          
6.  DIP Loan from Vida Capital  $7,000,000   $3,000,000   $10,000,000          
6.  Total Loans and Advances  $7,000,000   $3,000,000   $10,000,000   $-     
                            
NON-OPERATING RECEIPTS-OTHER                        
8.  Flow Thru Premiums & Platform Fees  $600   $600   $1,800   $600     
8.  Transfer From LPIFS Checking Acct# 4069  $1,400,000        $1,400,000          
8.  Interest Income  $292   $306   $776   $330     
8.  Other Inc-dividends on pd out policies       $4   $47   $45     
8.  Return of retainer            $-          
8.  Return Premiums Paid on LPI Owned Positions  $353        $353          
8.  Reimbursements & Refunds-COBRA insurance  $1,950   $1,020   $2,985          
8.  Reimbursements & Refunds-Unclaimed Property            $-          
8.  Reimbursements & Refunds-Utilities            $-          
8.  Reimbursements & Refunds-Postage            $48          
8.  Reimbursements & Refunds-Other       $203   $228          
8.  Total Other Non-Operating Receipts  $1,403,195   $2,134   $1,406,238   $975     
                            
OTHER OPERATING DISBURSEMENTS                        
25.  Premiums Advanced  $664,278   $915,869   $2,249,659   $1,185,385     
25.  Premiums-LPI Owned positions  $19,560   $23,627   $61,576   $19,282     
25.  Bank Fees (Charged & Reversed)  $1,861   $2,298   $6,005   $2,172     
25.  Premiums-BK, Texas AG &Others  $4,679   $10,524   $20,778   $3,360     
25.  Courier Services/Postage  $2,753   $2,007   $6,461   $1,564     
25.  Employee Relations  $445        $1,131          
25.  Flow Thru Premiums  $600   $600   $1,800   $600     
25.  Interest on DIP Loan                 $74,667     
25.  Legal Fees  $4,487        $4,487         1
25.  Licenses & Fees  $248   $155   $659   $137     
25.  Medical Records  $1,139   $1,265   $4,074   $946     
25.  Medical Review Life Expectancy  $4,650   $6,975   $11,850   $5,350     
25.  Outside Services  $14,669   $12,878   $33,567   $14,946     
25.  Payroll Garnishment  $641   $301   $942   $302     
25.  Payroll-401K deductions  $8,403   $8,229   $25,308   $8,245     
25.  PES Operating Exp  $375        $675   $300     
25.  Software Licenses & Support  $4,148   $2,597   $6,745   $5,585     
25.  Policy Administration Expense  $17,622   $17,584   $56,966   $7,018     
25.  Subscriptions  $13   $10   $33   $10     
25.  Transfer to LPHI Bank Acct #3772       $275,000   $275,000          
25.  Trust Fees/Cost Reimbursement  $10,000   $10,000   $30,000   $10,000     
25.  Total - Other Operating Disbursements  $760,572   $1,289,919   $2,797,715   $1,339,868     
                            
OTHER REORGANIZATION EXPENSES                        
29.  Transcription Services  $1,258   $8,568   $9,981   $4,396     
29.  Relativity Hosting  $-   $5,703   $11,407   $5,703     
29.  Trustee Travel Expense Reimbursement  $5,368   $6,421   $16,068   $8,004     
29.  TownHall Meeting Expenses  $4,287   $3,468   $7,754          
29.  Total - Other Reorganization Expenses  $10,913   $24,160   $45,210   $18,104     

 

1Legal Fees paid to Jardim, Meisner & Susser for assistance with obtaining death certificate from the state of New Jersey.

 

 

 

 

 

 Monthly Operating Report
  ACCRUAL BASIS-4

 

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

 

ACCOUNTS RECEIVABLE AGING  SCHEDULE
AMOUNT		   AUGUST   SEPTEMBER   OCTOBER 
1.  0-30  $139,890   $472,664   $704,082   $1,162,107 
2.  31-60  $279,914   $552,978   $474,566   $704,028 
3.  61-90  $77,762   $335,499   $552,978   $476,001 
4.  91+  $12,721,787   $16,742,245   $17,077,954   $17,066,696 
5.  TOTAL ACCOUNTS RECEIVABLE  $13,219,353   $18,103,386   $18,809,580   $19,408,8321
6.  AMOUNT CONSIDERED UNCOLLECTIBLE  $5,163,790   $5,483,317   $5,483,317   $5,483,3171
7.  ACCOUNTS RECEIVABLE (NET)  $8,055,563   $12,620,069   $13,326,263   $13,925,5151

 

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: October 2016

 

      0-30   31-60   61-90   91+    
TAXES PAYABLE  DAYS   DAYS   DAYS   DAYS  TOTAL 
1.  FEDERAL  $13,639                 $13,639 
2.  STATE  $0                 $0 
3.  LOCAL  $55,896             $73,496  $129,3922
4.  OTHER (ATTACH LIST)                     $0 
5.  TOTAL TAXES PAYABLE  $69,535   $0   $0   $73,496  $143,032 
                            
6.  ACCOUNTS PAYABLE  $277,070   $1,387,924   $856,278   $4,106,761  $6,628,034 

 

STATUS OF POSTPETITION TAXES MONTH: October 2016

 

      BEGINNING   AMOUNT       ENDING 
      TAX   WITHHELD AND/   AMOUNT   TAX 
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY 
1.  WITHHOLDING  $6,608   $12,896   $13,305   $6,199 
2.  FICA-EMPLOYEE  $3,950   $7,655   $7,885   $3,720 
3.  FICA-EMPLOYER  $3,950   $7,655   $7,885   $3,720 
4.  UNEMPLOYMENT  $0             $0 
5.  INCOME  $0             $0 
6.  OTHER (ATTACH LIST)  $0             $0 
7.  TOTAL FEDERAL TAXES  $14,508   $28,207   $29,075   $13,639 
STATE AND LOCAL                    
8.  WITHHOLDING                 $0 
9.  SALES                 $0 
10.  EXCISE                 $0 
11.  UNEMPLOYMENT  $0             $0 
12.  REAL PROPERTY  $0             $0 
13.  PERSONAL PROPERTY  $123,803   $5,590        $129,3922
14.  OTHER (ATTACH LIST)  $0             $0 
15.  TOTAL STATE & LOCAL  $123,803   $5,590   $0   $129,392 
16.  TOTAL TAXES  $138,310   $33,796   $29,075   $143,032 

 

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: October 2016

BANK RECONCILIATIONS 

    

 

      Account #1   Account #2   Account #3     
A.  BANK:  Bank of Texas   Bank of Texas   Bank of Texas     
B.  ACCOUNT NUMBER:  4080   4091   2027   TOTAL 
C.  PURPOSE (TYPE):  Checking   Checking   Checking     
1.  BALANCE PER BANK STATEMENT  $2,586,618   $606,474   $549   $3,193,641 
2.  ADD: TOTAL DEPOSITS NOT CREDITED  $27,881   $710        $28,591 
3.  SUBTRACT: OUTSTANDING CHECKS  $68,397   $607,184   $269   $675,850 
4.  OTHER RECONCILING ITEMS                 $0 
5.  MONTH END BALANCE PER BOOKS  $2,546,101   $(0)  $280   $2,546,381 
6.  NUMBER OF LAST CHECK WRITTEN   2748    3914    1040      

 

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  $1,8581
         
13.  TOTAL CASH - END OF MONTH  $2,548,238 

 

1  Item 12. Currency On Hand includes:  Petty Cash  $274      
      PayPal  $1,456      
      Prepaid Visa  $128      

 

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)  $155,411.33 
Premium Escrow Account FHPREA #0027  $8,727,490.78 
Maturities Account MEA #0019  $33,994,834.97 
   $42,877,737.08 

 

 

 

 

  Monthly Operating Report
  ACCRUAL BASIS-6

 

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

 

  MONTH: October 2016

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF  AMOUNT   TOTAL PAID 
NAME  PAYMENT  PAID   TO DATE 
1.  Mark Embry  Salaries/Expense Reimbursement  $13,894   $243,017 
2.  Advance Trust & Life Escrow Svcs  Premium Remittance/Cost Reimb  $358,284   $2,237,209 
3.  Life Partners Holdings, Inc.  Rent & Return deposit in error  $0   $113,565 
4.  LPI Financial Services, Inc.  Forward Platform Fees  $0   $10,353 
5.  Purchase Escrow Services, LLC  Premium Remittance/Cost Reimb  $300   $4,461,238 
6.  Colette Pieper  Salaries/Expense Reimbursement  $0   $263,671 
7.  Debora J. Carr  Salaries/Expense Reimbursement  $3,750   $66,896 
8.  TOTAL PAYMENTS TO INSIDERS  $376,228   $7,395,949 

 

PROFESSIONALS 2
      DATE OF COURT              TOTAL 
      ORDER AUTHORIZING  AMOUNT   AMOUNT   TOTAL PAID   INCURRED 
NAME  PAYMENT  APPROVED   PAID   TO DATE   & UNPAID 
1.  Asset Servicing Group  08/19/16  $1,784,796   $46,041   $1,456,631   $545,239 
2.  Bridgepoint Consulting  08/19/16  $1,887,042   $47,979   $1,429,823   $734,744 
3.  Epiq Bankruptcy Solutions  05/22/15  $5,949,060        $4,495,978   $1,478,082 
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  08/19/16  $433,729   $12,585   $356,451   $115,363 
7.  MMS Advisors  03/25/16  $246,992        $246,992   $0 
8.  Munsch, Hardt, Kopf & Harr, P.C.  08/25/16  $3,545,750   $77,293   $2,834,336   $2,009,852 
9.  Phillips Murrah  08/01/16  $450,476   $4,973   $313,069   $186,115 
10.  Pronske Goolsby & Kathman, P.C.  05/05/15  $128,618        $128,618   $0 
11.  Thompson & Knight, LLP  08/19/16  $18,343,117   $324,218   $14,602,350   $9,112,376 
12.  Tom Moran, US Trustee  12/18/15  $11,850        $11,850   $1,316,9963
13.  Smith, Jackson, Boyer & Bovard, PLLC  08/19/16  $73,749   $2,011   $67,650   $16,825 
14.  Predictive Resources  08/19/16  $595,464   $38,489   $486,938   $179,226 
15.  D3G Capital Management LLC/Lewis & Ellis Inc  05/24/16  $216,725        $214,925   $3,000 
16.  Barbara Pope  12/15/15  $42,477        $42,477   $04
17.  Sutherland Asbill & Brennan LLP  08/19/16  $46,271        $17,477   $39,797 
18.  Roetzel & Andress LPA  08/30/16                 $8,969 
19.  TOTAL PAYMENTS TO PROFESSIONALS          $553,590   $27,000,209   $15,746,581 

 

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   $5,423   $01
2. Pitney Bowes Global Financial Services, LLC  $906   $906   $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  $12,000   $12,000   $0 
6. TOTAL  $22,323   $22,323   $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: October 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 and from Vida Capital, Inc. per the DIP Facility Docket 2924 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  $516.00 /month

 

 

LIFE PARTNERS HOLDINGS INC Reports