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News Breaks
October 5, 2012
12:00 EDTLPHILife Partners rises 19.3%
Life Partners is up 19.3%, or 43c, to $2.66
News For LPHI From The Last 14 Days
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January 20, 2015
13:32 EDTLPHILife Partners files for Chapter 11 bankruptcy protection
Life Partners Holdings announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas on January 20. The company will continue to operate its business as "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Its primary operating subsidiary, Life Partners, Inc., will continue to operate as a life settlement provider. In connection with the Chapter 11 case, Life Partners Holdings has also filed for the appointment of a Chief Restructuring Officer who will oversee the implementation of the companyís plan for reorganization. The company elected to seek protection under Chapter 11 while it pursues an appeal of a $46M judgment against the company and two of its executive officers in favor of the SEC as previously disclosed in the companyís latest quarterly filing with the Commission. The SEC had filed a motion with the Federal trial court to appoint a receiver for the company. Faced with this possibility and having received no other protection requested from the Federal trial court, the company elected to seek protection under Chapter 11 in order to avoid the appointment of a receiver which could have liquidated the company and prevented the effective prosecution of the appeal. In connection with the bankruptcy filing, the company is seeking customary authority from the Bankruptcy Court that will enable it to continue to operate and for its subsidiaries to continue to serve its clients. As of January 20, the company and its subsidiaries had approximately $18.9M in assets, including approximately $2.9M of cash and cash equivalents and approximately $352,000 of certificates of deposit. Brian Pardo, CEO of Life Partners Holdings, Inc., stated, "After careful consideration, the Board of Directors unanimously concluded that filing for Chapter 11 was the appropriate course of action for the Company, given the importance of continuing to pursue the appeal of the final judgment in the SECís case as well as the prosecution and resolution of other pending litigation. We continue to believe in life settlements as a valuable and attractive asset class and we remain committed to continuing to serve our clients. In fact, during 2014, we saw over $71M paid out to thousands of LPI clients and over $200M in payouts since 2001. And, we expect to see additional payouts in the coming years. This was a strategic move intended to protect the value of the company and its shareholders from the damaging litigation which we believe would otherwise have destroyed all shareholder value. We look forward to working towards the successful and prompt emergence of the company from Chapter 11."
13:30 EDTLPHILife Partners files for Chapter 11 bankruptcy protection
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13:26 EDTLPHILife Partners trading halted, pending news
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