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

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Exhibit 99.2

 

  Monthly Operating Report
  ACCRUAL BASIS

 

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

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN & EASTERN DISTRICTS OF TEXAS

 

REGION 6

 

MONTHLY OPERATING REPORT

 

MONTH ENDING:   August   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   9/20/2016
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Paula Toy   Vice-President/Controller
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Paula Toy   9/20/2016
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		   JUNE   JULY   AUGUST     
ASSETS                         
1.  UNRESTRICTED CASH  $295,821   $2,446,097   $681,334   $4,730,558      
2.  RESTRICTED CASH  $101,555   $(0)  $0   $0      
3.  TOTAL CASH  $397,376   $2,446,097   $681,334   $4,730,558      
4.  ACCOUNTS RECEIVABLE (NET)  $143,949   $68,498   $46,998   $25,498      
5.  INVENTORY                         
6.  NOTES RECEIVABLE  $8,912                     
7.  PREPAID EXPENSES  $343,387   $101,962   $95,826   $94,907    6 
8.  OTHER (ATTACH LIST)  $49,475   $61,539   $53,539   $53,539      
9.  TOTAL CURRENT ASSETS  $943,098   $2,678,096   $877,698   $4,904,503      
10.  PROPERTY, PLANT & EQUIPMENT       $1,979,129   $1,979,129   $1,979,129      
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION       $(1,880,310)  $(1,884,223)  $(1,888,137)     
12.  NET PROPERTY, PLANT & EQUIPMENT  $299,672   $98,820   $94,906   $90,992      
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   $17,923,169   $18,551,354   $17,839,230      
16.  TOTAL ASSETS  $89,685,300   $20,700,085   $19,523,958   $22,834,725      
POSTPETITION LIABILITIES                         
17.  ACCOUNTS PAYABLE       $2,051,966   $3,680,706   $4,149,446    4 
18.  TAXES PAYABLE       $106,912   $112,482   $118,051    5 
19.  NOTES PAYABLE       $0   $0   $0      
20.  PROFESSIONAL FEES       $7,213,519   $7,763,939   $6,560,744    4&7 
21.  SECURED DEBT       $0   $0   $0      
22.  OTHER (ATTACH LIST)       $30,164,530   $31,117,178   $38,373,235    8 
23.  TOTAL POSTPETITION LIABILITIES       $39,536,928   $42,674,304   $49,201,476      
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   $653,081      
27.  OTHER (ATTACH LIST)       $0   $0   $0      
28.  TOTAL PREPETITION LIABILITIES  $9,203,450   $691,092   $691,092   $657,585      
29.  TOTAL LIABILITIES  $9,203,450   $40,228,021   $43,365,396   $49,859,061      
EQUITY                         
30.  PREPETITION OWNERS' EQUITY       $78,978,770   $78,978,770   $78,978,770      
31.  POSTPETITION CUMULATIVE
PROFIT OR (LOSS)		       $(27,308,049)  $(30,755,451)  $(33,503,557)     
32.  DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)		       $(71,198,657)  $(72,064,758)  $(72,499,549)   1 
33.  TOTAL EQUITY       $(19,527,936)  $(23,841,438)  $(27,024,336)     
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $20,700,085   $19,523,958   $22,834,725      

 

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.  $80,877,749.97 
Due from LPHI Management Services  $11,719.74 
Due to LPI Financial Services, Inc.  $(8,389,921.05)
   $72,499,548.66 

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 $4,093,958.95 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 $13,999.88 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		   JUNE   JULY   AUGUST    
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   $8,000   $0   $0   3
8.  Notes Receivable-Employee  $477   $470   $470   $470    
8.                          
8.  TOTAL - OTHER CURRENT ASSETS  $49,475   $61,539   $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   $17,396,547   $17,805,837   $16,902,807    
15.  Advance on Premiums paid by ATLES on behalf of investors  $136,291   $823,657   $1,028,880   $1,200,579    
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       $418,360   $432,033   $451,239    
15.  Deposits       $11,912   $11,912   $11,912    
15.  TOTAL - OTHER ASSETS  $13,513,629   $17,923,169   $18,551,354   $17,839,230    
                           
POSTPETITION LIABILITIES                       
22.  Accrued Payroll       $33,883   $30,930   $48,216   3
22.  Accrued Vacation       $76,319   $77,716   $70,762    
22.  Accrued 401K       $1,211   $1,689   $2,699    
22.  401K Loan       $298   $372   $596    
22.  Child Support & PR Garnishment       $0   $335   $0    
22.  US Trustee Fees       $25,305   $22,055   $28,555   2
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    
22.  Interest Payable on Loan From Maturities & DIP Financing            $956,566   $1,194,893   4
22.  Deferred Revenue       $5,027,515   $5,027,515   $5,027,515    
22  TOTAL - OTHER POSTPETITION LIABILITIES       $30,164,530   $31,117,178   $38,373,235    

1Sold pursuant to court order Dkt.1053
2This was previously shown as part of Line 20. Professional Fee Liability on page 1 of the Monthly Operating Report.
3Item 8. Employee Advances for June 2016 is miscoded payroll. This should have been coded to Accrued Payroll reducing the amount shown under Item 22. This was corrected in July.
4Interest Payable on Loan from Maturities & DIP Financing 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   August 2016  $238,326.77 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-2

 

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

 

INCOME STATEMENT  MAY   JUNE   JULY   AUGUST    
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  $13,808   $11,801   $15,438   $19,089    
7.  TOTAL COST OF GOODS SOLD  $13,808   $11,801   $15,438   $19,089    
8.  GROSS PROFIT  $(13,808)  $(11,801)  $(15,438)  $(19,089)   
OPERATING EXPENSES                       
9.  OFFICER / INSIDER COMPENSATION  $14,808   $20,347   $37,406   $34,414    
10.  SELLING & MARKETING  $0   $0   $0   $0    
11.  GENERAL & ADMINISTRATIVE  $228,696   $206,832   $205,923   $179,373    
12.  RENT & LEASE  $17,054   $16,148   $21,571   $16,472   3
13.  OTHER (ATTACH LIST)  $19,006   $14,856   $12,248   $19,307    
14.  TOTAL OPERATING EXPENSES  $279,563   $258,183   $277,149   $249,566    
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(293,371)  $(269,984)  $(292,587)  $(268,656)   
OTHER INCOME & EXPENSES                       
16.  NON-OPERATING INCOME (ATTACH LIST)  $(389)  $(4,024)  $(221)  $(292)  1
17.  NON-OPERATING EXPENSE (ATTACH LIST)  $0   $0   $0   $0    
18.  INTEREST EXPENSE  $0   $18   $956,566   $238,327   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  $3,525   $(92)  $960,258   $241,949    
REORGANIZATION EXPENSES                       
23.  PROFESSIONAL FEES  $1,696,771   $1,794,434   $2,165,672   $2,185,018    
24.  U.S. TRUSTEE FEES  $650   $2,600   $6,500   $6,500    
25.  OTHER (ATTACH LIST)  $10,086   $7,245   $22,384   $45,985    
26.  TOTAL REORGANIZATION EXPENSES  $1,707,507   $1,804,279   $2,194,557   $2,237,502    
27.  INCOME TAX                       
28.  NET PROFIT (LOSS)  $(2,004,403)  $(2,074,171)  $(3,447,402)  $(2,748,107)   

 

1See Supplement To Accrual Basis-2.
2See Supplement to Accrual Basis-1, Footnote 5.
3Item 12. Rent & Lease includes $5,423.33 for the quarterly lease of copiers.

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-2

 

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

 

INCOME STATEMENT  MAY   JUNE   JULY   AUGUST 
OTHER OPERATING EXPENSES                    
13.  Other Expense- Premium Expense  $19,006   $14,856   $4,761   $19,307 
13.  Other Expense- BK Premiums  $-   $-   $-   $- 
13.  Legal & Professional Expense            $7,487   $- 
13.  TOTAL - OTHER OPERATING EXPENSE  $19,006   $14,856   $12,248   $19,307 
NON-OPERATING INCOME                    
16.  Interest Income  $0   $3,864   $-   $- 
16.  Gain on Sale of Egyptian Replicas                    
16.  Gain on Sale of Assets                    
16.  Other Income  $388   $160   $221   $292 
16.  TOTAL NON-OPERATING INCOME  $389   $4,024   $221   $292 
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  $384   $155        $9,195 
25.  Relativity Hosting  $6,000   $3,363   $4,325   $4,563 
25.  Trustee Travel Expense  $3,702   $3,727   $3,333   $4,294 
25.  TownHall Meeting Expenses            $14,726   $27,933 
25.  Barbara Pope Contract Labor                    
25.  TOTAL OTHER REORGANIZATION EXP  $10,086   $7,245   $22,384   $45,985 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-3

 

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

CASH RECEIPTS AND DISBURSEMENTS  JULY   AUGUST   SEPTEMBER   QUARTER ENDED
SEPTEMBER 30, 2016		  
1.  CASH - BEGINNING OF MONTH  $2,446,097   $681,334   $4,730,558      
RECEIPTS FROM OPERATIONS                       
2.  CASH SALES                 $0    
COLLECTION OF ACCOUNTS RECEIVABLE                       
3.  PREPETITION  $21,500   $21,500        $43,000   1
4.  POSTPETITION       $1,380,981        $1,380,981   2
5.  TOTAL OPERATING RECEIPTS  $21,500   $1,402,481   $0   $1,423,981    
NON-OPERATING RECEIPTS                       
6.  LOANS & ADVANCES (ATTACH LIST)  $-   $7,000,000   $-   $7,000,000    
7.  SALE OF ASSETS                 $0    
8.  OTHER (ATTACH LIST)  $909   $1,403,195   $-   $1,404,104    
9.  TOTAL NON-OPERATING RECEIPTS  $909   $8,403,195   $0   $8,404,104    
10.  TOTAL RECEIPTS  $22,409   $9,805,676   $0   $9,828,085    
11.  TOTAL CASH AVAILABLE  $2,468,506   $10,487,010   $4,730,558         
OPERATING DISBURSEMENTS                       
12.  NET PAYROLL  $85,985   $88,946        $174,932    
13.  PAYROLL TAXES PAID  $33,909   $31,522        $65,431    
14.  SALES, USE & OTHER TAXES PAID  $150             $150    
15.  SECURED / RENTAL / LEASES  $21,571   $16,472        $38,044    
16.  UTILITIES  $8,437   $10,193        $18,630    
17.  INSURANCE  $23,302   $25,947        $49,249    
18.  INVENTORY PURCHASES                 $0    
19.  VEHICLE EXPENSES  $39   $790        $829    
20.  TRAVEL  $856   $3,149        $4,006    
21.  ENTERTAINMENT                 $0    
22.  REPAIRS & MAINTENANCE  $3,047   $4,252        $7,299    
23.  SUPPLIES  $1,197   $2,546        $3,742    
24.  ADVERTISING                 $0    
25.  OTHER (ATTACH LIST)  $747,224   $760,572   $0   $1,507,796    
26.  TOTAL OPERATING DISBURSEMENTS  $925,718   $944,390   $0   $1,870,108    
REORGANIZATION EXPENSES                       
27.  PROFESSIONAL FEES  $841,566   $4,801,149        $5,642,715    
28.  U.S. TRUSTEE FEES  $9,750             $9,750    
29.  OTHER (ATTACH LIST)  $10,138   $10,913   $0   $21,051    
30.  TOTAL REORGANIZATION EXPENSES  $861,454   $4,812,062   $0   $5,673,516    
31.  TOTAL DISBURSEMENTS  $1,787,172   $5,756,452   $0   $7,543,624    
32.  NET CASH FLOW  $(1,764,763)  $4,049,224   $0   $2,284,461    
33.  CASH - END OF MONTH  $681,334   $4,730,558   $4,730,558         

 

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.

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

 

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

 

CASH RECEIPTS AND DISBURSEMENTS  JULY   AUGUST   SEPTEMBER   QUARTER ENDED
SEPTEMBER 30, 2016		  
                           
NON-OPERATING RECEIPTS-LOANS AND ADVANCES                       
6.  Loan From Maturities (Dkt 1127)              $-  
6.  DIP Loan from Vida Capital       $7,000,000        $7,000,000    
6.  Total Loans and Advances  $-   $7,000,000   $-   $7,000,000    
                           
NON-OPERATING RECEIPTS-OTHER                       
8.  Flow Thru Premiums & Platform Fees  $600   $600        $1,200    
8.  Transfer From LPIFS Checking Acct# 4069       $1,400,000        $1,400,000    
8.  Interest Income  $178   $292        $470    
8.  Other Inc-dividends on pd out policies  $43             $43    
8.  Return of retainer                 $-    
8.  Return Premiums Paid on LPI Owned Positions       $353        $353    
8.  Reimbursements & Refunds-COBRA insurance  $15   $1,950        $1,965    
8.  Reimbursements & Refunds-Unclaimed Property                 $-    
8.  Reimbursements & Refunds-Utilities                 $-    
8.  Reimbursements & Refunds-Postage  $48             $48    
8.  Reimbursements & Refunds-Other  $25             $25    
8.  Total Other Non-Operating Receipts  $909   $1,403,195   $-   $1,404,104    
                           
OTHER OPERATING DISBURSEMENTS                       
25.  Premiums Advanced  $669,512   $664,278        $1,333,791    
25.  Premiums-LPI Owned positions  $18,389   $19,560        $37,949    
25.  Bank Fees (Charged & Reversed)  $1,845   $1,861        $3,707    
25.  Premiums-BK, Texas AG &Others  $5,575   $4,679        $10,254    
25.  Courier Services/Postage  $1,700   $2,753        $4,454    
25.  Employee Relations  $686   $445        $1,131    
25.  Flow Thru Premiums  $600   $600        $1,200    
25.  Legal Fees       $4,487        $4,487   1
25.  Licenses & Fees  $256   $248        $504    
25.  Medical Records  $1,670   $1,139        $2,809    
25.  Medical Review Life Expectancy  $225   $4,650        $4,875    
25.  Outside Services  $6,020   $14,669        $20,689    
25.  Payroll Garnishment       $641        $641    
25.  Payroll-401K deductions  $8,676   $8,403        $17,079    
25.  PES Operating Exp  $300   $375        $675    
25.  Software Licenses & Support       $4,148        $4,148    
25.  Policy Administration Expense  $21,760   $17,622        $39,382    
25.  Subscriptions  $10   $13        $23    
25.  Trust Fees/Cost Reimbursement  $10,000   $10,000        $20,000    
25.  Distribution of Phoenix Life Insurance Settlement                 $-    
25.  Total - Other Operating Disbursements  $747,224   $760,572   $-   $1,507,796    
                           
OTHER REORGANIZATION EXPENSES                       
29.  Transcription Services  $155   $1,258        $1,414    
29.  Relativity Hosting  $5,703   $-        $5,703    
29.  Trustee Travel Expense Reimbursement  $4,279   $5,368        $9,647    
29.  TownHall Meeting Expenses       $4,287        $4,287    
29.  Total - Other Reorganization Expenses  $10,138   $10,913   $-   $21,051    

 

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		   JUNE   JULY   AUGUST  
1.  0-30  $139,890   $627,301   $668,939   $472,664  
2.  31-60  $279,914   $414,998   $572,875   $552,978  
3.  61-90  $77,762   $943,516   $414,998   $335,499  
4.  91+  $12,721,787   $16,234,389   $17,177,905   $16,742,245  
5.  TOTAL ACCOUNTS RECEIVABLE  $13,219,353   $18,220,204   $18,834,716   $18,103,386 1
6.  AMOUNT CONSIDERED UNCOLLECTIBLE  $5,163,790   $5,483,317   $5,483,317   $5,483,317 1
7.  ACCOUNTS RECEIVABLE (NET)  $8,055,563   $12,736,887   $13,351,399   $12,620,069 1

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: August 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  $44,555             $73,496   $118,051 2
4.  OTHER (ATTACH LIST)                      $0  
5.  TOTAL TAXES PAYABLE  $44,555   $0   $0   $73,496   $118,051  
                              
6.  ACCOUNTS PAYABLE  $41,495   $2,448,689   $1,117,913   $541,349   $4,149,446  

STATUS OF POSTPETITION TAXES MONTH: August 2016

      BEGINNING   AMOUNT       ENDING  
      TAX   WITHHELD AND/   AMOUNT   TAX  
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY
1.  WITHHOLDING  $0   $13,554   $13,554   $0
2.  FICA-EMPLOYEE  $0   $8,984   $8,984   $0  
3.  FICA-EMPLOYER  $0   $8,984   $8,984   $0  
4.  UNEMPLOYMENT  $0             $0  
5.  INCOME  $0             $0  
6.  OTHER (ATTACH LIST)  $0             $0  
7.  TOTAL FEDERAL TAXES  $0   $31,522   $31,522   $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  $112,482   $5,569        $118,051 2
14.  OTHER (ATTACH LIST)  $0             $0  
15.  TOTAL STATE & LOCAL  $112,482   $5,569   $0   $118,051  
16.  TOTAL TAXES  $112,482   $37,092   $31,522   $118,051  

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: August 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   $4,785,221   $458,471   $2,263   $5,245,955 
2.  ADD: TOTAL DEPOSITS NOT CREDITED   $0   $4,353        $4,353 
3.  SUBTRACT: OUTSTANDING CHECKS   $58,548   $462,824   $150   $521,522 
4.  OTHER RECONCILING ITEMS                  $0 
5.  MONTH END BALANCE PER BOOKS   $4,726,673   $0   $2,113   $4,728,786 
6.  NUMBER OF LAST CHECK WRITTEN    2618    3038    1007      

 

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       $0 2
8.                    
9.                    
10.                    
11.  TOTAL INVESTMENTS        $0   $0  

 

CASH

 

12.  CURRENCY ON HAND  $1,772 1
          
13.  TOTAL CASH - END OF MONTH  $4,730,558  

 

1  Item 12. Currency On Hand includes:  Petty Cash  $391     
      PayPal  $1,209      
      Prepaid Visa  $172      

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)  $12,939.31 
Premium Escrow Account FHPREA #0027  $9,147,027.42 
Maturities Account MEA #0019  $28,228,426.97 
   $37,388,393.70 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

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

 

  MONTH: August 2016

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF  AMOUNT   TOTAL PAID 
NAME  PAYMENT  PAID   TO DATE 
1.  Mark Embry  Salaries/Expense Reimbursement  $14,888   $215,662 
2.  Advance Trust & Life Escrow Svcs  Premium Remittance/Cost Reimb  $181,775   $1,598,303 
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  $375   $4,460,938 
6.  Colette Pieper  Salaries/Expense Reimbursement  $0   $263,671 
7.  Debora J. Carr  Salaries/Expense Reimbursement  $3,750   $59,396 
8.  TOTAL PAYMENTS TO INSIDERS     $200,788   $6,721,887 

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  $1,539,610   $203,896   $1,338,821   $501,565  
2.  Bridgepoint Consulting  08/19/16  $1,622,470   $184,163   $1,356,689   $565,050  
3.  Epiq Bankruptcy Solutions  05/22/15  $5,422,600   $2,385   $3,732,788   $1,714,812  
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  $367,289   $31,523   $329,248   $101,088  
7.  MMS Advisors  03/25/16  $246,992        $246,992   $0  
8.  Munsch, Hardt, Kopf & Harr, P.C.  08/25/16  $3,132,415   $521,265   $2,645,550   $1,212,865  
9.  Phillips Murrah  08/01/16  $411,695   $44,665   $302,605   $228,114  
10.  Pronske Goolsby & Kathman, P.C.  05/05/15  $128,618        $128,618   $0  
11.  Thompson & Knight, LLP  08/19/16  $16,446,405   $3,741,108   $13,697,158   $6,907,729  
12.  Tom Moran, US Trustee  12/18/15  $11,850        $11,850   $1,143,915 3
13.  Smith, Jackson, Boyer & Bovard, PLLC  08/19/16  $67,116   $8,057   $65,574   $9,832  
14.  Predictive Resources  08/19/16  $464,316   $16,827   $391,430   $241,649  
15.  D3G Capital Management LLC/Lewis & Ellis Inc  05/24/16  $214,925   $42,385   $214,925   $18,000  
16.  Barbara Pope  12/15/15  $42,477        $42,477   $0 4
17.  Sutherland Asbill & Brennan LLP  08/19/16  $34,889   $4,875   $17,477   $33,434  
18.  TOTAL PAYMENTS TO PROFESSIONALS          $4,801,149   $24,816,847   $12,678,051  

 

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   $0 1
2.  Pitney Bowes Global Financial Services, LLC  $906   $0   $0 1
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   $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: August 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  $330.00  /month 

 

 

 

LIFE PARTNERS HOLDINGS INC Reports