LIFE PARTNERS HOLDINGS INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - August 19, 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:   July   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   8/19/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Paula Toy   Vice-President/Controller
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Paula Toy   8/19/2016
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		   MAY   JUNE   JULY     
ASSETS                         
1.  UNRESTRICTED CASH  $295,821   $4,090,619   $2,446,097   $681,334      
2.  RESTRICTED CASH  $101,555   $(0)  $(0)  $0      
3.  TOTAL CASH  $397,376   $4,090,619   $2,446,097   $681,334      
4.  ACCOUNTS RECEIVABLE (NET)  $143,949   $89,998   $68,498   $46,998      
5.  INVENTORY                         
6.  NOTES RECEIVABLE  $8,912                     
7.  PREPAID EXPENSES  $343,387   $101,248   $101,962   $95,826    6 
8.  OTHER (ATTACH LIST)  $49,475   $53,545   $61,539   $53,539      
9.  TOTAL CURRENT ASSETS  $943,098   $4,335,410   $2,678,096   $877,698      
10.  PROPERTY, PLANT & EQUIPMENT       $1,979,129   $1,979,129   $1,979,129      
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION       $(1,876,396)  $(1,880,310)  $(1,884,223)     
12.  NET PROPERTY, PLANT & EQUIPMENT  $299,672   $102,733   $98,820   $94,906      
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   $17,268,742   $17,923,169   $18,551,354      
16.  TOTAL ASSETS  $89,685,300   $21,706,885   $20,700,085   $19,523,958      
POSTPETITION LIABILITIES                         
17.  ACCOUNTS PAYABLE       $1,893,947   $2,051,966   $3,680,706    4 
18.  TAXES PAYABLE       $101,343   $106,912   $112,482    5 
19.  NOTES PAYABLE       $0   $0   $0      
20.  PROFESSIONAL FEES       $5,931,577   $7,213,519   $7,763,939    4&7 
21.  SECURED DEBT       $0   $0   $0      
22.  OTHER (ATTACH LIST)       $30,459,419   $30,164,530   $31,117,178    8 
23.  TOTAL POSTPETITION LIABILITIES       $38,386,286   $39,536,928   $42,674,304      
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   $39,077,379   $40,228,021   $43,365,396      
EQUITY                         
30.  PREPETITION OWNERS' EQUITY       $78,978,770   $78,978,770   $78,978,770      
31.  POSTPETITION CUMULATIVE  PROFIT OR (LOSS)       $(25,233,878)  $(27,308,049)  $(30,755,451)     
32.  DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)       $(71,115,385)  $(71,198,657)  $(72,064,758)   1 
33.  TOTAL EQUITY       $(17,370,493)  $(19,527,936)  $(23,841,438)     
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $21,706,885   $20,700,085   $19,523,958      

 

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.  $79,205,010.10 
Due from LPHI Management Services  $11,719.74 
Due to LPI Financial Services, Inc.  $(7,151,972.18)
   $72,064,757.66 

 

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 $3,591,717.34 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 $14,370.78 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.
8Item 22. Other Postpetition Liabilities reflects a correction to the June 2016 figure previously reported here.

 

   

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-1

 

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

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   MAY   JUNE   JULY    
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   $8,000   $0    
8.  Notes Receivable-Employee  $477   $476   $470   $470    
8.                          
8.  TOTAL - OTHER CURRENT ASSETS  $49,475   $53,545   $61,539   $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   $16,840,949   $17,396,547   $17,805,837    
15.  Advance on Premiums paid by ATLES on behalf of investors  $136,291   $751,058   $823,657   $1,028,880    
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       $392,129   $418,360   $432,033    
15.  Deposits       $11,912   $11,912   $11,912    
15.  TOTAL - OTHER ASSETS  $13,513,629   $17,268,742   $17,923,169   $18,551,354    
                           
POSTPETITION LIABILITIES                       
22.  Accrued Payroll       $13,634   $33,883   $30,930   4
22.  Accrued Vacation       $77,532   $76,319   $77,716    
22.  Accrued 401K       $3,343   $1,211   $1,689    
22.  401K Loan       $854   $298   $372    
22.  Child Support & PR Garnishment       $0   $0   $335    
22.  US Trustee Fees       $22,705   $25,305   $22,055   3
22.  Phoenix Life Insurance Settlement       $313,835   $0   $0   2
22.  Loan From Maturities (Dkt 1127)       $25,000,000   $25,000,000   $25,000,000    
22.  Interest Payable on Loan From Maturities                 $956,566   5
22.  Deferred Revenue       $5,027,515   $5,027,515   $5,027,515    
22  TOTAL - OTHER POSTPETITION LIABILITIES       $30,459,419   $30,164,530   $31,117,178    

 

  1 Sold pursuant to court order Dkt.1053  
  2 Funds received from class action lawsuit against Phoenix Life Insurance regarding COI increases. These funds were distributed to position holder escrow accounts in June.  
  3 This was previously shown as part of Line 20. Professional Fee Liability on page 1 of the Monthly Operating Report.  
  4 June 2016 Accrued Payroll reflects a correction to the figure previously report here.  
  5 Interest Payable on Loan from Maturities includes interest that pertains to previous periods as shown below:  

 

November 2015  $13,286.11   April 2016  $97,217.58 
December 2015  $68,345.21   May 2016  $109,303.86 
January 2016  $93,132.74   June 2016  $166,340.39 
February 2016  $90,335.75   July 2016  $211,867.28 
March 2016  $106,737.02         

 

   

 

 

Monthly Operating Report
ACCRUAL BASIS-2

 

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

 

INCOME STATEMENT  APRIL   MAY   JUNE   JULY    
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  $12,748   $13,808   $11,801   $15,438    
7.  TOTAL COST OF GOODS SOLD  $12,748   $13,808   $11,801   $15,438    
8.  GROSS PROFIT  $(12,748)  $(13,808)  $(11,801)  $(15,438)   
OPERATING EXPENSES                       
9.  OFFICER / INSIDER COMPENSATION  $114,842   $14,808   $20,347   $37,406   2
10.  SELLING & MARKETING  $0   $0   $0   $0    
11.  GENERAL & ADMINISTRATIVE  $217,736   $228,696   $206,832   $205,923    
12.  RENT & LEASE  $19,603   $17,054   $16,148   $21,571    
13.  OTHER (ATTACH LIST)  $13,014   $19,006   $14,856   $12,248    
14.  TOTAL OPERATING EXPENSES  $365,195   $279,563   $258,183   $277,149    
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(377,943)  $(293,371)  $(269,984)  $(292,587)   
OTHER INCOME & EXPENSES                       
16.  NON-OPERATING INCOME (ATTACH LIST)  $(6,689)  $(389)  $(4,024)  $(221)  1
17.  NON-OPERATING EXPENSE (ATTACH LIST)  $0   $0   $0   $0    
18.  INTEREST EXPENSE  $0   $0   $18   $956,566   3
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  $(2,775)  $3,525   $(92)  $960,258    
REORGANIZATION EXPENSES                       
23.  PROFESSIONAL FEES  $1,909,503   $1,696,771   $1,794,434   $2,165,672    
24.  U.S. TRUSTEE FEES  $9,750   $650   $2,600   $6,500    
25.  OTHER (ATTACH LIST)  $13,917   $10,086   $7,245   $22,384    
26.  TOTAL REORGANIZATION EXPENSES  $1,933,170   $1,707,507   $1,804,279   $2,194,557    
27.  INCOME TAX                       
28.  NET PROFIT (LOSS)  $(2,308,338)  $(2,004,403)  $(2,074,171)  $(3,447,402)   

 

  1 See Supplement To Accrual Basis-2.
  2 April 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.
  3 See Supplement to Accrual Basis-1, Footnote 5.

 

   

 

 

Monthly Operating Report
SUPPLEMENT TO
ACCRUAL BASIS-2

 

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

 

 

INCOME STATEMENT  APRIL   MAY   JUNE   JULY    
OTHER OPERATING EXPENSES                       
13.  Other Expense- Premium Expense  $13,014   $19,006   $14,856   $4,761    
13.  Other Expense- BK Premiums  $-   $-   $-   $-    
13.  Legal & Professional Expense                 $7,487    
13.  TOTAL - OTHER OPERATING EXPENSE  $13,014   $19,006   $14,856   $12,248    
NON-OPERATING INCOME                       
16.  Interest Income  $2   $0   $3,864   $-    
16.  Gain on Sale of Egyptian Replicas                       
16.  Gain on Sale of Assets                       
16.  Other Income  $6,687   $388   $160   $221   1
16.  TOTAL NON-OPERATING INCOME  $6,689   $389   $4,024   $221    
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  $5,940   $6,000   $3,363   $4,325    
25.  Trustee Travel Expense  $7,585   $3,702   $3,727   $3,333    
25.  TownHall Meeting Expenses                 $14,726    
25.  Barbara Pope Contract Labor                       
25.  TOTAL OTHER REORGANIZATION EXP  $13,917   $10,086   $7,245   $22,384    

 

  1 April 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		   JULY    
1.  CASH - BEGINNING OF MONTH  $813,452   $5,991,886   $4,090,619        $2,446,097    
RECEIPTS FROM OPERATIONS                            
2.  CASH SALES                 $0         
COLLECTION OF ACCOUNTS RECEIVABLE                            
3.  PREPETITION            $21,500   $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   $21,500    
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   $909    
9.  TOTAL NON-OPERATING RECEIPTS  $7,950,323   $908   $5,434   $7,956,665   $909    
10.  TOTAL RECEIPTS  $7,950,394   $175,532   $26,334   $8,152,259   $22,409    
11.  TOTAL CASH AVAILABLE  $8,763,846   $6,167,417   $4,116,953        $2,468,506    
OPERATING DISBURSEMENTS                            
12.  NET PAYROLL  $98,937   $221,518   $102,979   $423,434   $85,985   1
13.  PAYROLL TAXES PAID  $38,572   $83,221   $34,054   $155,847   $33,909   2
14.  SALES, USE & OTHER TAXES PAID            $18   $18   $150    
15.  SECURED / RENTAL / LEASES  $19,603   $17,054   $16,148   $52,805   $21,571    
16.  UTILITIES  $7,317   $5,754   $5,739   $18,810   $8,437    
17.  INSURANCE  $49,792   $23,134   $55,100   $128,026   $23,302   3
18.  INVENTORY PURCHASES                 $0         
19.  VEHICLE EXPENSES  $123   $1,698   $40   $1,862   $39    
20.  TRAVEL  $1,175   $869   $1,438   $3,482   $856    
21.  ENTERTAINMENT                 $0         
22.  REPAIRS & MAINTENANCE  $3,090   $5,818   $3,931   $12,839   $3,047    
23.  SUPPLIES  $2,102   $1,436   $1,756   $5,294   $1,197    
24.  ADVERTISING                 $0         
25.  OTHER (ATTACH LIST)  $1,002,759   $654,548   $993,419   $2,650,726   $747,224    
26.  TOTAL OPERATING DISBURSEMENTS  $1,223,471   $1,015,049   $1,214,623   $3,453,143   $925,718    
REORGANIZATION EXPENSES                            
27.  PROFESSIONAL FEES  $1,524,029   $1,039,144   $445,872   $3,009,045   $841,566    
28.  U.S. TRUSTEE FEES  $9,750             $9,750   $9,750    
29.  OTHER (ATTACH LIST)  $14,710   $22,605   $10,362   $47,677   $10,138    
30.  TOTAL REORGANIZATION EXPENSES  $1,548,490   $1,061,749   $456,233   $3,066,472   $861,454    
31.  TOTAL DISBURSEMENTS  $2,771,960   $2,076,798   $1,670,856   $6,519,614   $1,787,172    
32.  NET CASH FLOW  $5,178,433   $(1,901,266)  $(1,644,522)  $1,632,645   $(1,764,763)   
33.  CASH - END OF MONTH  $5,991,886   $4,090,619   $2,446,097        $681,334    

 

  1 Net Payroll for May includes $84,556.59 severance and vacation paid to a former officer.
  2 Payroll 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.
  3 June 2016 insurance includes $32,116.09 paid for D&O insurance normally paid by LPHI.
  4 Receipt of payment on settlement with Jacobowitz Family Trust per Docket 2126.
  5 This 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		   JULY 
                        
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   $600 
8.  Interest Income       $102   $4,020   $4,122   $178 
8.  Other Inc-dividends on pd out policies            $4   $4   $43 
8.  Return of retainer  $21,170             $21,170      
8.  Reimbursements & Refunds-COBRA insurance  $351        $29   $380   $15 
8.  Reimbursements & Refunds-Unclaimed Property  $6,687             $6,687      
8.  Reimbursements & Refunds-Utilities       $206        $206      
8.  Reimbursements & Refunds-Postage            $584   $584   $48 
8.  Reimbursements & Refunds-Other            $196   $196   $25 
8.  Total Other Non-Operating Receipts  $28,808   $908   $5,434   $35,150   $909 
                             
OTHER OPERATING DISBURSEMENTS                         
25.  Premiums Advanced  $946,068   $591,332   $569,617   $2,107,017   $669,512 
25.  Premiums-LPI Owned positions  $14,027   $14,700   $21,514   $50,241   $18,389 
25.  Bank Fees (Charged & Reversed)  $807   $1,982   $5,134   $7,923   $1,8451
25.  Premiums-BK, Texas AG &Others            $11,470   $11,470   $5,575 
25.  Courier Services/Postage  $1,352   $2,010   $1,164   $4,526   $1,700 
25.  Employee Relations                 $-   $686 
25.  Flow Thru Premiums  $600   $600   $600   $1,800   $600 
25.  Legal Retainer       $3,000      $3,000   2
25.  Licenses & Fees  $376   $140   $256   $772   $256 
25.  Medical Records  $1,454   $3,718   $1,813   $6,986   $1,670 
25.  Medical Review Life Expectancy  $2,350   $1,350        $3,700   $225 
25.  Outside Services  $6,472   $3,981   $4,882   $15,335   $6,020 
25.  Payroll Garnishment            $303   $303      
25.  Payroll-401K deductions  $9,236   $8,508   $12,736   $30,480   $8,676 
25.  PES Operating Exp            $863   $863   $300 
25.  Software Licenses & Support       $2,800   $10,561   $13,362      
25.  Policy Administration Expense  $9,658   $9,875   $28,661   $48,194   $21,760 
25.  Subscriptions  $309   $551   $10   $870   $10 
25.  Trust Fees/Cost Reimbursement  $10,050   $10,000   $10,000   $30,050   $10,000 
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   $747,224 
                             
OTHER REORGANIZATION EXPENSES                         
29.  Transcription Services  $392   $384        $776   $155 
29.  Relativity Hosting  $9,098   $13,332   $5,703   $28,133   $5,703 
29.  Trustee Travel Expense Reimbursement  $5,221   $8,888   $4,659   $18,767   $4,279 
29.  Barbara Pope Contract Labor                 $-      
29.  Privilege Log Export                 $-      
29.  Total - Other Reorganization Expenses  $14,710   $22,605   $10,362   $47,677   $10,138 

 

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		   MAY   JUNE   JULY 
1.  0-30   $

139,890

   $

413,824

   $

627,301

   $

668,939

 
2.  31-60   $279,914   $943,516   $414,998   $572,875 
3.  61-90   $77,762   $608,500   $943,516   $414,998 
4.  91+   $12,721,787   $15,626,167   $16,234,389   $17,177,905 
5.  TOTAL ACCOUNTS RECEIVABLE  $13,219,353   $17,592,007   $18,220,204   $18,834,7161
6.  AMOUNT CONSIDERED UNCOLLECTIBLE  $5,163,790   $5,483,317   $5,483,317   $5,483,3171
7.  ACCOUNTS RECEIVABLE (NET)  $8,055,563   $12,108,690   $12,736,887   $13,351,3991

 

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: July 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  $38,985             $73,496   $112,4822
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL TAXES PAYABLE  $38,985   $0   $0   $73,496   $112,482
                             
6.  ACCOUNTS PAYABLE  $74,148   $1,639,113   $170,120   $1,797,324   $3,680,706 

 

STATUS OF POSTPETITION TAXES MONTH: July 2016

 

      BEGINNING   AMOUNT       ENDING 
      TAX   WITHHELD AND/   AMOUNT   TAX 
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY 
1.  WITHHOLDING  $0   $14,858   $14,858   $0 
2.  FICA-EMPLOYEE  $0   $9,525   $9,525   $0 
3.  FICA-EMPLOYER  $0   $9,525   $9,525   $0 
4.  UNEMPLOYMENT  $0             $0 
5.  INCOME  $0             $0 
6.  OTHER (ATTACH LIST)  $0             $0 
7.  TOTAL FEDERAL TAXES  $0   $33,909   $33,909   $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  $106,912   $5,569        $112,4822
14.  OTHER (ATTACH LIST)  $0             $0 
15.  TOTAL STATE & LOCAL  $106,912   $5,569   $0   $112,482 
16.  TOTAL TAXES  $106,912   $39,478   $33,909   $112,482 

 

1 These amounts are reported in detail on SUPPLEMENT TO ACCRUAL BASIS-1 under Item 15. Other Assets.  
2 The 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: July 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   $985,789   $132,059   $2,350   $1,120,198 
2.  ADD: TOTAL DEPOSITS NOT CREDITED   $178   $1,948        $2,126 
3.  SUBTRACT: OUTSTANDING CHECKS   $310,016   $134,006        $444,022 
4.  OTHER RECONCILING ITEMS                  $0 
5.  MONTH END BALANCE PER BOOKS   $675,952   $0   $2,350   $678,302 
6.  NUMBER OF LAST CHECK WRITTEN    2519    2662    1002      

 

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  $3,0321
         
13.  TOTAL CASH - END OF MONTH   $681,334 

 

1  Item 12. Currency On Hand includes:  Petty Cash  $522         
      PayPal  $2,326         
      Prepaid Visa  $185         

 

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)  $138,509.07 
Premium Escrow Account FHPREA #0027  $21,248,431.04 
Maturities Account MEA #0019  $13,384,657.64 
   $34,771,597.75 

 

 

 

  

Monthly Operating Report
ACCRUAL BASIS-6

 

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

 

  MONTH: July 2016

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF  AMOUNT   TOTAL PAID 
NAME  PAYMENT  PAID   TO DATE 
1.  Mark Embry  Salaries/Expense Reimbursement  $14,443   $200,773 
2.  Advance Trust & Life Escrow Svcs  Premium Remittance/Cost Reimb  $215,735   $1,416,528 
3.  Life Partners Holdings, Inc.  Rent & Return deposit in error       $113,565 
4.  LPI Financial Services, Inc.  Forward Platform Fees  $8,255   $10,353 
5.  Purchase Escrow Services, LLC  Premium Remittance/Cost Reimb  $300   $4,460,563 
6.  Colette Pieper  Salaries/Expense Reimbursement  $0   $263,671 
7.  Debora J. Carr  Salaries/Expense Reimbursement  $4,021   $55,646 
8.  TOTAL PAYMENTS TO INSIDERS     $242,753   $6,521,099 

 

PROFESSIONALS 2
      DATE OF COURT              TOTAL 
      ORDER AUTHORIZING  AMOUNT   AMOUNT   TOTAL PAID   INCURRED 
NAME  PAYMENT  APPROVED   PAID   TO DATE   & UNPAID 
1.  Asset Servicing Group  04/22/16  $1,134,925        $1,134,925   $565,927 
2.  Bridgepoint Consulting  04/15/16  $1,172,526   $46,840   $1,172,526   $652,595 
3.  Epiq Bankruptcy Solutions  05/22/15  $4,470,169   $230,132   $3,730,404   $764,765 
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  04/22/16  $297,725   $11,426   $297,725   $105,087 
7.  MMS Advisors  03/25/16  $246,992        $246,992   $0 
8.  Munsch, Hardt, Kopf & Harr, P.C.  05/24/16  $2,124,285   $135,069   $2,124,285   $1,482,630 
9.  Phillips Murrah  04/22/16  $257,940        $257,940   $250,817 
10.  Pronske Goolsby & Kathman, P.C.  05/05/15  $128,618        $128,618   $0 
11.  Thompson & Knight, LLP  06/03/16  $9,956,051   $388,889   $9,956,051   $9,510,355 
12.  Tom Moran, US Trustee  12/18/15  $11,850        $11,850   $1,074,2823
13.  Smith, Jackson, Boyer & Bovard, PLLC  04/15/16  $57,516   $211   $57,516   $9,846 
14.  Predictive Resources  04/22/16  $374,603   $13,398   $374,603   $151,540 
15.  D3G Capital Management LLC/Lewis & Ellis Inc  05/24/16  $172,540   $3,000   $172,540   $55,385 
16.  Barbara Pope  12/15/15  $42,477        $42,477   $04
17.  Sutherland Asbill & Brennan LLP  03/25/16  $0   $12,602   $12,602   $36,515 
18.  TOTAL PAYMENTS TO PROFESSIONALS          $841,566   $20,015,698   $14,659,744 

 

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   $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  $12,000   $12,000   $0 
6.  TOTAL  $22,323   $21,416   $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: July 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