New Chapter 11 Filing – Life Settlements Absolute Return I, LLC
Life Settlements Absolute Return I, LLC, a special purpose vehicle investing in life insurance policies, and its wholly-owned subsidiary, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 17-13030). The Debtors estimate their assets to be between $10,000,001 and $50 million and their liabilities to be between $100,000,001 and $500 million. According to the First Day Declaration, the chapter 11 cases are the result of insureds living beyond their actuarial life expectancies, which has led to an unexpected delay in policy payouts and the Debtors’ need for additional capital. The Debtors have requested that the Court authorize them to use their cash collateral, noting their need to continue paying the premiums on their life insurance policies – their only significant assets – to preserve the value of their estates. The Debtors have not proposed a claims agent. The cases have been assigned to the Honorable Mary F. Walrath.
Contact Norman L. Pernick or Nicholas J. Brannick for more information regarding this matter. Please note, however, that Cole Schotz P.C. does not represent the debtors in these cases and cannot respond to questions directed toward the debtors.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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