UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 20, 2015

 

 

 

LIFE PARTNERS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Texas 0-7900 74-2962475

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

204 Woodhew

Waco, Texas

 76712
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (254) 751-7797

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

Item 7.01Regulation FD.

 

On November 20, 2015, Life Partners Holdings, Inc. (the “Company”) and its direct and indirect subsidiaries, Life Partners, Inc. and LPI Financial Services, Inc., filed with the United States Bankruptcy Court for the Northern District of Texas unaudited and unreviewed monthly operating reports for the Company and its direct and indirect subsidiaries for the month ended October 31, 2015 (the “Monthly Operating Reports”). The Monthly Operating Reports are attached to this current report on Form 8-K as Exhibit 99.1 through Exhibit 99.3 and are incorporated herein by reference.

 

Limitation on Incorporation by Reference:

 

In accordance with general instruction B.2 of Form 8-K, the information in Item 7.01 of this report, including Exhibit 99.1 through Exhibit 99.3, is furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section.

 

Item 9.01Financial Statements and Exhibits.

 

(d)Exhibits.

 

99.1Monthly Operating Report for the month ended October 31, 2015 for Life Partners Holdings, Inc.

 

99.2Monthly Operating Report for the month ended October 31, 2015 for Life Partners, Inc.

 

99.3Monthly Operating Report for the month ended October 31, 2015 for LPI Financial Services, Inc.

 

 

 


SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  LIFE PARTNERS HOLDINGS, INC.
     
Date:  November 23, 2015 By: /s/ Colette Pieper
    Colette Pieper
    Chief Executive Officer

 

 

 

INDEX TO EXHIBITS

 

Item   Exhibit
     
99.1   Monthly Operating Report for the month ended October 31, 2015 for Life Partners Holdings, Inc.
     
99.2   Monthly Operating Report for the month ended October 31, 2015 for Life Partners, Inc.
     
99.3   Monthly Operating Report for the month ended October 31, 2015 for LPI Financial Services, Inc.

 

 



 

Exhibit 99.1

 

  Monthly Operating Report
  ACCRUAL BASIS

  

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11
   
JUDGE: Russell Nelms

 

UNITED STATES BANKRUPTCY COURT

 

NORTHERN & EASTERN DISTRICTS OF TEXAS

 

REGION 6

 

MONTHLY OPERATING REPORT

 

MONTH ENDING: October   2015  
  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   11/20/2015
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Colette Pieper   CEO
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Colette Pieper   11/20/2015
PRINTED NAME OF PREPARER   DATE

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-1

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   AUGUST   SEPTEMBER   OCTOBER    
                           
ASSETS             
1.  UNRESTRICTED CASH  $51,248   $35,458   $326,670   $354,758    
2.  RESTRICTED CASH                       
3.  TOTAL CASH  $51,248   $35,458   $326,670   $354,758    
4.  ACCOUNTS RECEIVABLE (NET)                       
5.  INVENTORY                       
6.  NOTES RECEIVABLE                       
7.  PREPAID EXPENSES       $168,482   $504,726   $468,698    
8.  OTHER (ATTACH LIST)  $76,415   $95,165   $84,665   $84,665    
9.  TOTAL CURRENT ASSETS  $127,664   $299,105   $916,061   $908,120    
10.  PROPERTY, PLANT & EQUIPMENT  $2,188,639   $2,188,639   $2,188,639   $2,188,639    
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION       $(825,402)  $(831,120)  $(836,838)   
12.  NET PROPERTY, PLANT & EQUIPMENT  $2,188,639   $1,363,237   $1,357,519   $1,351,801    
13.  DUE FROM INSIDERS                       
14.  OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)  $166,250   $166,250   $166,250   $0    
15.  OTHER (ATTACH LIST)                       
16.  TOTAL ASSETS  $2,482,552   $1,828,592   $2,439,830   $2,259,921    
POSTPETITION LIABILITIES             
17.  ACCOUNTS PAYABLE       $513,595   $1,054,868   $1,045,066    
18.  TAXES PAYABLE       $37,923   $43,071   $76,683    
19.  NOTES PAYABLE                       
20.  PROFESSIONAL FEES       $6,536,268   $6,156,291   $6,097,578    
21.  SECURED DEBT       $6,521   $290,616   $258,193    
22.  OTHER (ATTACH LIST)                       
23.  TOTAL POSTPETITION LIABILITIES       $7,094,306   $7,544,846   $7,477,521    
PREPETITION LIABILITIES             
24.  SECURED DEBT  $267,505   $65,035   $65,035   $65,035   1
25.  PRIORITY DEBT  $3,991,351                   
26.  UNSECURED DEBT  $114,283,485   $1,588,832   $1,588,832   $1,588,832   2
27.  OTHER (ATTACH LIST)                       
28.  TOTAL PREPETITION LIABILITIES  $118,542,341   $1,653,867   $1,653,867   $1,653,867    
29.  TOTAL LIABILITIES  $118,542,341   $8,748,174   $9,198,714   $9,131,388    
EQUITY             
30.  PREPETITION OWNERS' EQUITY       $(73,722,301)  $(73,722,301)  $(73,722,301)   
31.  POSTPETITION CUMULATIVE PROFIT OR (LOSS)       $(7,556,986)  $(7,578,724)  $(7,692,486)   
32.  DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)       $74,359,705   $74,542,142   $74,543,320   3
33.  TOTAL EQUITY       $(6,919,582)  $(6,758,884)  $(6,871,467)   
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $1,828,592   $2,439,830   $2,259,921    

 

1Item 24. Secured Debt includes $3,260.33 accrued property tax for the prepetition period, due post petition.
2The Schedule Amount for Item 26. Unsecured Debt includes Intercompany Due To/From LPI shown below in Item 32.
3Intercompany Due To/From Life Partners, Inc.

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-1

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   AUGUST   SEPTEMBER   OCTOBER 
                    
8. OTHER CURRENT ASSETS          
8.  Pardo Family Holdings Trust (Advance to Price L. Johnson, PC)  $24,441   $31,323   $31,323   $31,323 
8.  Pardo Family Holdings Trust (Advance to Kyle, Mathis & Lucas, LLP)  $51,975   $53,343   $53,343   $53,343 
8.  Rent due from Life Partners, Inc.       $10,500           
8.                       
8.                       
8.                       
8.                       
8                       
8.  TOTAL - OTHER CURRENT ASSETS  $76,415   $95,165   $84,665   $84,665 
14. OTHER ASSETS - NET OF AMORTIZATION          
14.  Woolly Mammoth & Other Prehistoric Artifacts  $166,250   $166,250   $166,250      
14.                       
14.                       
14.                       
14.                       
14.  TOTAL - OTHER ASSETS (Net of Amort.)  $166,250   $166,250   $166,250   $- 
15. OTHER ASSETS          
15.                       
15.                       
15.                       
15.                       
15.                       
15.                       
15.                       
15.                       
15.                       
15.  TOTAL - OTHER ASSETS  $-   $-   $-   $- 
                        
POSTPETITION LIABILITIES          
22.                       
22.                       
22.                       
22.                       
22.                       
22.                       
22  TOTAL - OTHER POSTPETITION LIABILITIES       $-   $-   $- 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-2

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

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                       
5.  DIRECT LABOR                       
6.  DIRECT OVERHEAD                       
7.  TOTAL COST OF GOODS SOLD  $0   $0   $0   $0    
8.  GROSS PROFIT  $0   $0   $0   $0    
OPERATING EXPENSES             
9.  OFFICER / INSIDER COMPENSATION                       
10.  SELLING & MARKETING                       
11.  GENERAL & ADMINISTRATIVE  $47,520   $42,251   $51,554   $73,439   1
12.  RENT & LEASE            $0   $0    
13.  OTHER (ATTACH LIST)  $10,320   $22,352   $15,413   $17,512   1
14.  TOTAL OPERATING EXPENSES  $57,840   $64,603   $66,966   $90,951    
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(57,840)  $(64,603)  $(66,966)  $(90,951)   
OTHER INCOME & EXPENSES             
16.  NON-OPERATING INCOME (ATTACH LIST)  $(10,000)  $(10,500)  $(10,000)  $(10,000)   
17.  NON-OPERATING EXPENSE (ATTACH LIST)            $0   $0    
18.  INTEREST EXPENSE  $131   $36   $31   $798    
19.  DEPRECIATION / DEPLETION  $5,718   $5,718   $5,718   $5,718    
20.  AMORTIZATION            $0   $0    
21.  OTHER (ATTACH LIST)  $0        $(35,447)  $39,133   2
22.  NET OTHER INCOME & EXPENSES  $(4,152)  $(4,746)  $(39,698)  $35,649    
REORGANIZATION EXPENSES             
23.  PROFESSIONAL FEES  $1,314,994   $804,838   $(6,279)  $(13,826)  3
24.  U.S. TRUSTEE FEES  $325        $71   $988    
25.  OTHER (ATTACH LIST)  $1,770   $582   $669         
26.  TOTAL REORGANIZATION EXPENSES  $1,317,088   $805,420   $(5,540)  $(12,838)   
27.  INCOME TAX            $10         
28.  NET PROFIT (LOSS)  $(1,370,776)  $(865,276)  $(21,738)  $(113,762)   

 

1August figures have been adjusted to reflect $3,333.34 that was reclassified from Other to General & Administrative Expenses.
2Item 21. Other Income & Expense for September is gain recognized on the sale of the airport hangar. This asset was carried on the books of Life Partners, Inc., but was owned by LPHI, therefore, the corresponding reduction in assets shows on Life Partners, Inc. MOR-1
3Item 23. Professional Fees for October are negative due to reversing fees previously accrued on LPHI where the invoice received allocate the fees to LPI.

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-2

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

INCOME STATEMENT  JULY   AUGUST   SEPTEMBER   OCTOBER    
OPERATING EXPENSES             
13.  LEGAL & PROFESSIONAL FEES  $10,320   $22,352   $15,413   $17,512  
13.                          
13.  TOTAL OTHER OPERATING EXPENSES  $10,320   $22,352   $15,413   $17,512    
NON-OPERATING INCOME             
16.  RENTAL INCOME  $10,000   $10,000   $10,000   $10,000    
16.  LATE FEE INCOME       $500              
16.                          
16.  TOTAL NON-OPERATING INCOME  $10,000   $10,500   $10,000   $10,000    
OTHER INCOME & EXPENSES             
21.  GAIN ON SALE OF AIRPORT HANGAR            $(35,447)       1
21.  LOSS ON SALE OF ICE AGE COLLECTION                 $39,133    
21.                          
21.  NET OTHER INCOME & EXPENSES  $0   $0   $(35,447)  $39,133    
REORGANIZATION EXPENSES             
25.  TRANSCRIPTION SERVICES  $1,770   $582   $669         
25.                          
25.  TOTAL OTHER REORGANIZATION EXPENSES  $1,770   $582   $669   $0    

 

1Item 21. The airport hangar was carried on the books of Life Partners, Inc., but was owned by LPHI, therefore, the corresponding reduction in assets shows on Life Partners, Inc. MOR-1

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-3

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

CASH RECEIPTS AND DISBURSEMENTS  AUGUST   SEPTEMBER   QUARTER   OCTOBER    
1.  CASH - BEGINNING OF MONTH  $33,749   $35,458       $326,670  
RECEIPTS FROM OPERATIONS             
2.  CASH SALES            $0         
COLLECTION OF ACCOUNTS RECEIVABLE             
3.  PREPETITION            $0         
4.  POSTPETITION            $0         
5.  TOTAL OPERATING RECEIPTS  $0   $0   $0   $0    
NON-OPERATING RECEIPTS             
6.  LOANS & ADVANCES (ATTACH LIST)            $0         
7.  SALE OF ASSETS       $268,996   $268,996   $67,117   1
8.  OTHER (ATTACH LIST)  $5,168   $26,255   $41,423   $10,000    
9.  TOTAL NON-OPERATING RECEIPTS  $5,168   $295,251   $310,419   $77,117    
10.  TOTAL RECEIPTS  $5,168   $295,251   $310,419   $77,117    
11.  TOTAL CASH AVAILABLE  $38,917   $330,710   $310,419   $403,787    
OPERATING DISBURSEMENTS             
12.  NET PAYROLL            $0         
13.  PAYROLL TAXES PAID            $0         
14.  SALES, USE & OTHER TAXES PAID       $10   $10         
15.  SECURED / RENTAL / LEASES            $0         
16.  UTILITIES            $0         
17.  INSURANCE  $2,456   $2,456   $7,388   $34,572    
18.  INVENTORY PURCHASES            $0         
19.  VEHICLE EXPENSES            $0         
20.  TRAVEL            $0         
21.  ENTERTAINMENT            $0         
22.  REPAIRS & MAINTENANCE            $0         
23.  SUPPLIES            $0         
24.  ADVERTISING            $0         
25.  OTHER (ATTACH LIST)  $212   $1,394   $6,624   $12,299    
26.  TOTAL OPERATING DISBURSEMENTS  $2,668   $3,860   $14,022   $46,871    
REORGANIZATION EXPENSES             
27.  PROFESSIONAL FEES            $0   $947    
28.  U.S. TRUSTEE FEES            $1,950   $650    
29.  OTHER (ATTACH LIST)  $791   $180   $2,459   $562    
30.  TOTAL REORGANIZATION EXPENSES  $791   $180   $4,409   $2,159    
31.  TOTAL DISBURSEMENTS  $3,459   $4,039   $18,431   $49,030    
32.  NET CASH FLOW  $1,709   $291,212   $291,989   $28,087    
33.  CASH - END OF MONTH  $35,458   $326,670        $354,758    

 

1Item 7. Sale of Assets for September includes $208,996.12 received from the sale of the airplane hangar and a $60,000 down payment on the sale of the Ice Age Collection. For October, this includes proceeds from the sale of the Ice Age Collection.

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

CASH RECEIPTS AND DISBURSEMENTS  AUGUST   SEPTEMBER   QUARTER   OCTOBER 
                    
OTHER NON-OPERATING RECEIPTS          
8.  Lease & Rental Income       $20,500   $30,500   $10,000 
8.  Return of Retainer       $5,755   $5,755      
8.  Worker's Compensation Dividend  $5,168        $5,168      
8.  Total - Non-Operating Receipts  $5,168   $26,255   $41,423   $10,000 
                        
OTHER OPERATING DISBURSEMENTS          
25.  Registrar & Transfer Fees       $1,400   $2,450   $1,050 
25.  Filing Fees  $212        $212      
25.  Web Page Hosting            $3,750   $11,249 
25.  Bank Acct Analysis Fee       $(6)  $213      
25.  Total - Other Operating Disbursements  $212   $1,394   $6,624   $12,299 
                        
OTHER REORGANIZATION EXPENSES          
29.  Transcription Services  $791   $180   $2,459   $562 
29.               $0      
29.  Total - Other Reorganization Expenses  $791   $180   $2,459   $562 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-4

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

ACCOUNTS RECEIVABLE AGING  SCHEDULE
AMOUNT		   AUGUST   SEPTEMBER   OCTOBER 
                
1.  0-30                    
2.  31-60                    
3.  61-90                    
4.  91+                    
5.  TOTAL ACCOUNTS RECEIVABLE  $0   $0   $0   $0 
6.  AMOUNT CONSIDERED UNCOLLECTIBLE                    
7.  ACCOUNTS RECEIVABLE (NET)  $0   $0   $0   $0 

 

AGING OF POSTPETITION TAXES AND PAYABLES  MONTH:   October 2015 
                        
      0-30   31-60   61-90   91+     
TAXES PAYABLE  DAYS   DAYS   DAYS   DAYS   TOTAL 
1.  FEDERAL                      $0 
2.  STATE                      $0 
3.  LOCAL  $76,683                  $76,683 
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL TAXES PAYABLE  $76,683   $0   $0   $0   $76,683 
                             
6.  ACCOUNTS PAYABLE  $2,542   $401,699   $139,831   $500,994   $1,045,066 

 

STATUS OF POSTPETITION TAXES      MONTH:   October 2015    
                       
      BEGINNING   AMOUNT       ENDING    
      TAX   WITHHELD AND/   AMOUNT   TAX    
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY    
1.  WITHHOLDING             $0  
2.  FICA-EMPLOYEE                 $0    
3.  FICA-EMPLOYER                 $0    
4.  UNEMPLOYMENT                 $0    
5.  INCOME                 $0    
6.  OTHER (ATTACH LIST)                 $0    
7.  TOTAL FEDERAL TAXES  $0   $0   $0   $0    
STATE AND LOCAL             
8.  WITHHOLDING                 $0    
9.  SALES                 $0    
10.  EXCISE                 $0    
11.  UNEMPLOYMENT                 $0    
12.  REAL PROPERTY  $43,071   $33,612        $76,683   1
13.  PERSONAL PROPERTY                 $0    
14.  OTHER (ATTACH LIST)                 $0    
15.  TOTAL STATE & LOCAL  $43,071   $33,612   $0   $76,683    
16.  TOTAL TAXES  $43,071   $33,612   $0   $76,683    

 

1The figures shown here include $28,460.88 in penalty accrued on calendar year 2014 taxes, but do not include $3,260.33 accrued for the prepetition period of Jan. 1, 2015 thru Jan. 19, 2015.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-5

 

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

          MONTH:   October 2015 
BANK RECONCILIATIONS                
      Account #1   Account #2   Account #3     
A. BANK:  Bank of America   Alliance Bank   Bank of Texas     
B. ACCOUNT NUMBER:  3363   613   3772    
C. PURPOSE (TYPE):  DIP Account   MoneyMarket   Checking   TOTAL 
1.  BALANCE PER BANK STATEMENT            $355,630   $355,630 
2.  ADD: TOTAL DEPOSITS NOT CREDITED                 $0 
3.  SUBTRACT: OUTSTANDING CHECKS            $872   $872 
4.  OTHER RECONCILING ITEMS                 $0 
5.  MONTH END BALANCE PER BOOKS  $0   $0   $354,758   $354,758 
6.  NUMBER OF LAST CHECK WRITTEN   1013         1029      

 

INVESTMENT ACCOUNTS                
                    
      DATE OF   TYPE OF   PURCHASE   CURRENT 
BANK, ACCOUNT NAME & NUMBER  PURCHASE   INSTRUMENT   PRICE   VALUE 
7.                       
8.                       
9.                       
10.                       
11.  TOTAL INVESTMENTS          $0   $0 

 

CASH       
        
12.  CURRENCY ON HAND  $0 
         
13.  TOTAL CASH - END OF MONTH  $354,758 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

MONTH: October 2015
   

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF   AMOUNT   TOTAL PAID 
   NAME  PAYMENT   PAID   TO DATE 
1.                  
2.                  
3.                  
4.                  
5.                  
6.  TOTAL PAYMENTS TO INSIDERS      $0   $0 

 

 

PROFESSIONALS   3
      DATE OF COURT              TOTAL    
      ORDER AUTHORIZING  AMOUNT   AMOUNT   TOTAL PAID   INCURRED    
   NAME  PAYMENT  APPROVED   PAID   TO DATE   & UNPAID    
1.  Asset Servicing Group               $770,581  
2.  Bridgepoint Consulting  10/29/15  $70,372             $606,217    
3.  Epiq Bankruptcy Solutions  05/22/15  $2,178,943        $558,773   $1,620,170    
4.  Forshey & Prostok, LLP  04/28/15  $154,409        $57,613   $96,796   1
5.  Kevin Buchanan & Associates  07/01/15  $140,235             $140,235    
6.  Kim Hinkle, Attorney at Law                    $187,945    
7.  MMS Advisors                    $346,992    
8.  Munsch, Hardt, Kopf & Harr, P.C.                    $1,535,116    
9.  Phillips Murrah                    $151,136    
10.  Pronske Goolsby & Kathman, P.C.  05/05/15  $128,618        $100,000   $28,618   1
11.  Thompson & Knight, LLP               $3,434   $7,772,799   4
12.  Tom Moran, US Trustee          $9,632   $9,632   $451,918    
13.  Smith, Jackson, Boyer & Bovard, PLLC                    $52,021    
14.  Inventus, LLC               $25,000   $1,405   5
15.  First Advantage Litigation Consulting               $6,000   $6,000   5
16.  Predictive Resources                    $72,500    
17.  Barbara Pope          $4,355   $4,355   $57,067    
18.  TOTAL PAYMENTS TO PROFESSIONALS          $9,632   $760,452   $13,840,451    

 

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.  Bank Direct Capital Finance  $1,105   $1,105   $4,368 
2.  First Insurance Funding Corp.  $32,116   $32,116   $253,825 
3.                  
4.                  
5.                  
6.  TOTAL  $33,221   $33,221   $258,193 

 

1The payments reflected here are retainers paid in prior months by Life Partners, Inc.
3Professional fees and expenses estimated and accrued prior to May 19th are reflected only on the books of Life Partners Holdings, Inc.  Thereafter, professional fees and expenses reflect the estimated aggregate, unallocated fees and expenses for all of the Debtors, and are noted on each of the Debtors MORs.
4The payment reflected here was a payment made by Life Partners, Inc. to Thompson & Knight for the initial bankruptcy filing fees for LPI & LPIFS. This is being shown here because these fees are included in the amounts invoiced by Thompson & Knight.
5Amounts paid to Inventus, LLC and First Advantage Litigation Consulting are retainers paid by Life Partners, Inc.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-7

 

CASE NAME: Life Partners Holdings, Inc.
   
CASE NUMBER: 15-40289-rfn-11

 

MONTH: October 2015

 

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 1. The Ice Age Collection was sold pursuant to court order (Docket 1053).

Questionnaire Item 5. A postpetition loan was received from First Insurance Funding Corp. to finance D&O and E&O insurance premiums.

Questionnaire Item 10. Past due amounts are mainly professional fees incurred after the filing date.

 

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.

Commercial Fine Arts insurance thru Travelers Lloyds Insurance was cancelled due to sale of artifacts (Ice Age Collection).

 

INSTALLMENT PAYMENTS

TYPE OF        PAYMENT AMOUNT 
POLICY  CARRIER  PERIOD COVERED  & FREQUENCY 
Directors & Officers  Illinois National  09/30/15- 09/30/16   
Errors & Omissions  Indian Harbor  09/30/15- 09/30/16     
Total for Financed thru  First Insurance Funding Corp     $ 32,116.09 /month 
Commercial Package*  Allied Insurance  06/14/15 - 06/13/16  $1,066.08 /month 
Commercial Fine Arts  Travelers Lloyds Insurance  06/14/15 - 06/14/16  $ 285.10 /month 
Cyber Liability  Beazley Insurance  05/12/15 - 06/12/16  $1,104.82 /month 

 

*includes auto, building, edp, excess liability

 

1This obligation has been paid in full.

 

 



 

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   2015  
  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   11/20/2015
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Colette Pieper   CEO
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Colette Pieper   11/20/2015
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   $122,481   $242,099   $228,824    
2.  RESTRICTED CASH  $101,555   $101,599   $101,613   $7    
3.  TOTAL CASH  $397,376   $224,080   $343,712   $228,831    
4.  ACCOUNTS RECEIVABLE (NET)  $143,949   $135,456   $135,456   $133,532    
5.  INVENTORY                       
6.  NOTES RECEIVABLE  $8,912                   
7.  PREPAID EXPENSES  $343,387   $117,417   $124,649   $122,207    
8.  OTHER (ATTACH LIST)  $49,475   $58,153   $58,696   $54,434    
9.  TOTAL CURRENT ASSETS  $943,098   $535,106   $662,514   $539,004    
10.  PROPERTY, PLANT & EQUIPMENT       $2,229,987   $1,996,382   $1,996,382   3
11.  LESS: ACCUMULATED DEPRECIATION/DEPLETION       $(1,923,673)  $(1,874,992)  $(1,881,353)  3
12.  NET PROPERTY, PLANT & EQUIPMENT  $299,672   $306,314   $121,390   $115,029    
13.  DUE FROM INSIDERS  $74,265,951   $0   $0   $0    
14.  OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)  $662,950   $662,950   $662,950   $0    
15.  OTHER (ATTACH LIST)  $13,513,629   $13,314,901   $13,246,192   $13,917,492  
16.  TOTAL ASSETS  $89,685,300   $14,819,271   $14,693,046   $14,571,525    
POSTPETITION LIABILITIES             
17.  ACCOUNTS PAYABLE       $291,016   $1,329,537   $1,866,555   4
18.  TAXES PAYABLE       $10,568   $13,551   $90,454   5
19.  NOTES PAYABLE       $0   $0   $0    
20.  PROFESSIONAL FEES       $2,314,197   $2,923,067   $4,942,561    
21.  SECURED DEBT       $0   $0   $0    
22.  OTHER (ATTACH LIST)       $5,161,945   $5,182,720   $5,179,974    
23.  TOTAL POSTPETITION LIABILITIES       $7,777,726   $9,448,874   $12,079,543    
PREPETITION LIABILITIES             
24.  SECURED DEBT   undetermined   $8,476   $5,976   $5,976   2
25.  PRIORITY DEBT   undetermined   $90,306   $90,306   $90,306    
26.  UNSECURED DEBT  $9,203,450   $686,751   $686,492   $686,588   6
27.  OTHER (ATTACH LIST)       $0   $0   $0    
28.  TOTAL PREPETITION LIABILITIES  $9,203,450   $785,533   $782,773   $782,869    
29.  TOTAL LIABILITIES  $9,203,450   $8,563,258   $10,231,647   $12,862,412    
EQUITY             
30.  PREPETITION OWNERS' EQUITY       $78,978,770   $78,978,770   $78,978,770    
31.  POSTPETITION CUMULATIVE
PROFIT OR (LOSS)		       $(4,262,686)  $(6,440,232)  $(9,440,896)   
32.  DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)		       $(68,460,072)  $(68,077,139)  $(67,828,761)  1
33.  TOTAL EQUITY       $6,256,012   $4,461,399   $1,709,113    
34.  TOTAL LIABILITIES & OWNERS' EQUITY       $14,819,271   $14,693,046   $14,571,525    

 

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.  $74,543,319.50 
Due from LPHI Management Services  $11,719.74 
Due to LPI Financial Services, Inc.  $(6,726,277.79)
   $67,828,761.45 

 

2Item 24. Secured Debt is accrued property taxes for the prepetition period of Jan. 1, 2015 thru May 19, 2015. The reduction shown in September is the collection of property taxes at the time of the sale of airport hangar for this prepetition period.
3The airport hangar was carried as an asset on Life Partners, Inc. books, but it was owned by Life Partners Holdings, Inc. Since this asset & the foxcart equipment have been sold, they were removed from the assets on the books of LPI. The proceeds and gain on sale of the hangar were recorded on the books of LPHI since LPHI was the owner.
4Item 17. Accounts Payables includes $1,780,031.25 of invoices from bankruptcy professionals that would normally be included in Item 20. Professional Fees.
5Accrued personal property taxes includes an adjustment to taxes as a result of the taxing authority changing the valuation of the airplane held on 1/1/15.
6This figure increased due to applying a prepetition credit of $96.36 against postpetition invoices.

 

   

 

 

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.  Purchase Escrow Services (Abandonment Premiums)       $3,429   $3,429   $-   2
8.  Employee Advances  $992        $659   $0    
8.  Notes Receivable-Employee  $477   $1,655   $1,539   $1,365    
8                          
8.  TOTAL - OTHER CURRENT ASSETS  $49,475   $58,153   $58,696   $54,434    
14. OTHER ASSETS - NET OF AMORTIZATION             
14.  Woolly Mammoth & Other Prehistoric Artifacts  $662,950   $662,950   $662,950   $-   1
14.                          
14.                          
14.                          
14.                          
14.  TOTAL - OTHER ASSETS (Net of Amort.)  $662,950   $662,950   $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   $13,585,166   $13,505,182   $14,029,884    
15.  Advance on Premiums paid by ATLES on behalf of investors  $136,291   $140,536   $137,006   $273,922    
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       $300,793   $315,754   $325,436    
15.  Deposits       $15,712   $15,558   $15,558    
15.  TOTAL - OTHER ASSETS  $13,513,629   $13,314,901   $13,246,192   $13,917,492    
                           
POSTPETITION LIABILITIES             
22.  Accrued Payroll       $50,305   $67,803   $58,048    
22.  Accrued Vacation       $84,125   $87,402   $89,485    
22.  Accrued 401K       $0   $0   $4,034    
22.  401K Loan       $0   $0   $741    
22.  Child Support & PR Garnishment       $0   $0   $152    
22.  Deferred Revenue       $5,027,515   $5,027,515   $5,027,515    
22  TOTAL - OTHER POSTPETITION LIABILITIES       $5,161,945   $5,182,720   $5,179,974    

 

1Sold pursuant to court order Dkt.1053
2These Abandonment Premiums were collected back from PES in October.

 

   

 

 

Monthly Operating Report

ACCRUAL BASIS-2

 

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

 

INCOME STATEMENT  May19-June30   JULY   AUGUST   SEPTEMBER   OCTOBER    
REVENUES                  
1.  GROSS REVENUES                            
2.  LESS: RETURNS & DISCOUNTS                            
3.  NET REVENUE  $0   $0   $0   $0   $0    
COST OF GOODS SOLD                  
4.  MATERIAL            $0   $0   $0    
5.  DIRECT LABOR            $0   $0   $0    
6.  DIRECT OVERHEAD  $31,060   $14,937   $19,450   $17,060   $6,784    
7.  TOTAL COST OF GOODS SOLD  $31,060   $14,937   $19,450   $17,060   $6,784  
8.  GROSS PROFIT  $(31,060)  $(14,937)  $(19,450)  $(17,060)  $(6,784)   
OPERATING EXPENSES                  
9.  OFFICER / INSIDER COMPENSATION  $43,877   $34,279   $28,794   $30,165   $30,165    
10.  SELLING & MARKETING                 $0   $0    
11.  GENERAL & ADMINISTRATIVE  $380,272   $265,732   $244,334   $270,143   $275,276    
12.  RENT & LEASE  $14,240   $18,452   $17,098   $14,178   $19,571    
13.  OTHER (ATTACH LIST)  $80,533   $139,091   $38,302   $8,558   $26,125    
14.  TOTAL OPERATING EXPENSES  $518,922   $457,554   $328,529   $323,044   $351,138    
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $(549,982)  $(472,491)  $(347,979)  $(340,104)  $(357,922)   
OTHER INCOME & EXPENSES                  
16.  NON-OPERATING INCOME (ATTACH LIST)  $(33)  $(56)  $(11,490)  $(8,929)  $70,816   1
17.  NON-OPERATING EXPENSE (ATTACH LIST)                 $0   $0    
18.  INTEREST EXPENSE                 $3   $(3)   
19.  DEPRECIATION / DEPLETION  $13,960   $6,980   $6,327   $6,871   $6,361    
20.  AMORTIZATION                 $0   $0    
21.  OTHER (ATTACH LIST)  $2,300   $7,593   $(1,502)  $4,082   $(994)   
22.  NET OTHER INCOME & EXPENSES  $16,227   $14,517   $(6,664)  $2,027   $76,180    
REORGANIZATION EXPENSES                  
23.  PROFESSIONAL FEES  $501,083   $781,528   $1,575,668   $1,832,459   $2,559,012    
24.  U.S. TRUSTEE FEES  $4,875   $4,875        $2,956   $7,549    
25.  OTHER (ATTACH LIST)            $126   $0   $0    
26.  TOTAL REORGANIZATION EXPENSES  $505,958   $786,403   $1,575,794   $1,835,415   $2,566,561    
27.  INCOME TAX                            
28.  NET PROFIT (LOSS)  $(1,072,167)  $(1,273,410)  $(1,917,109)  $(2,177,546)  $(3,000,664)   

 

1See supplement to MOR-2.

 

   

 

 

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.  Bad Debt Expense  $120,008              
13.  Other Expense- Premium Expense  $18,143   $289   $8,558   $20,546    
13.  Other Expense- BK Premiums  $941             $5,579    
13.  Impairment Expense  $-   $38,013   $-   $-  
13.  TOTAL - OTHER OPERATING EXPENSE  $139,091   $38,302   $8,558   $26,125    
NON-OPERATING INCOME             
16.  Interest Income  $15   $11,490   $3,883   $3,753    
16.  Loss on sale of Ice Age Collection                 $(156,067)   
16.  Life Assets Trust S.A. return                 $77,998   2
16.  Gain on Sale of Egyptian Replicas                 $3,500    
16.  Gain on Sale of Assets            $5,000        1
16.  Other Income  $42        $46   $-    
16.  TOTAL NON-OPERATING INCOME  $56   $11,490   $8,929   $(70,816)   
NON-OPERATING EXPENSE             
17.                    $-    
17.                          
17.                          
17.                          
17.                          
17.  TOTAL NON-OPERATING EXPENSE  $-   $-   $-   $-    
OTHER EXPENSE             
21.  Franchise Tax  $7,593   $(1,502)  $4,082   $(994)   
21.  State Income Tax-Other       $-   $-   $-    
21.                          
21.                          
21.                          
21.  TOTAL OTHER EXPENSE  $7,593   $(1,502)  $4,082   $(994)   
OTHER REORGANIZATION EXPENSES             
25.  Transcription Services       $126              
25.                          
25.                          
25.                          
25.                          
25.  TOTAL OTHER REORGANIZATION EXP  $-   $126   $-   $-    

 

1Gain on sale of foxcart equipment sold along with the airport hangar pursuant to court order.
2This is Life Partners' portion of the settlement reached between Life Assets Trust S.A.and Portigon Ag, New York Branch, due to the bank foreclosing on the assets of Life Assets Trust SA. Life Partners owned approximately 19.91% of Life Assets Trust S.A. Compartment A.

 

   

 

 

Monthly Operating Report

ACCRUAL BASIS-3

 

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

 

CASH RECEIPTS AND DISBURSEMENTS  AUGUST   SEPTEMBER   QUARTER   OCTOBER    
1.  CASH - BEGINNING OF MONTH  $151,618   $224,080       $343,712  
RECEIPTS FROM OPERATIONS             
2.  CASH SALES            $0         
COLLECTION OF ACCOUNTS RECEIVABLE             
3.  PREPETITION  $124        $161         
4.  POSTPETITION       $267,147   $267,147   $32,926    
5.  TOTAL OPERATING RECEIPTS  $124   $267,147   $267,308   $32,926    
NON-OPERATING RECEIPTS             
6.  LOANS & ADVANCES (ATTACH LIST)            $0         
7.  SALE OF ASSETS       $5,000   $5,000   $510,383   1
8.  OTHER (ATTACH LIST)  $713,551   $370,531   $1,899,950   $344,381    
9.  TOTAL NON-OPERATING RECEIPTS  $713,551   $375,531   $1,904,950   $854,764    
10.  TOTAL RECEIPTS  $713,675   $642,678   $2,172,258   $887,691    
11.  TOTAL CASH AVAILABLE  $865,293   $866,758        $1,231,403    
OPERATING DISBURSEMENTS             
12.  NET PAYROLL  $112,468   $114,878   $398,029   $116,986    
13.  PAYROLL TAXES PAID  $39,049   $36,818   $135,772   $38,231    
14.  SALES, USE & OTHER TAXES PAID       $191   $191         
15.  SECURED / RENTAL / LEASES  $7,137   $24,583   $50,082   $19,756    
16.  UTILITIES  $10,024   $10,339   $46,426   $11,250    
17.  INSURANCE  $62,429   $27,738   $157,585   $2,596    
18.  INVENTORY PURCHASES            $0         
19.  VEHICLE EXPENSES       $125   $125   $128    
20.  TRAVEL  $1,188   $2,137   $4,983   $3,471    
21.  ENTERTAINMENT            $0         
22.  REPAIRS & MAINTENANCE  $4,487   $4,312   $11,699   $2,666    
23.  SUPPLIES  $195   $2,131   $3,891   $5,099    
24.  ADVERTISING            $0         
25.  OTHER (ATTACH LIST)  $129,111   $291,516   $902,274   $779,600    
26.  TOTAL OPERATING DISBURSEMENTS  $366,087   $514,768   $1,711,056   $979,785    
REORGANIZATION EXPENSES             
27.  PROFESSIONAL FEES  $275,000   $6,000   $379,992   $13,040    
28.  U.S. TRUSTEE FEES       $2,278   $2,603   $9,747    
29.  OTHER (ATTACH LIST)  $126   $0   $126        2
30.  TOTAL REORGANIZATION EXPENSES  $275,126   $8,278   $382,722   $22,787    
31.  TOTAL DISBURSEMENTS  $641,213   $523,046   $2,093,778   $1,002,572    
32.  NET CASH FLOW  $72,462   $119,632   $78,480   $(114,881)   
33.  CASH - END OF MONTH  $224,080   $343,712        $228,831    

 

1Proceeds from sale of Ice Age Collection and replicas of Egyptian Artifacts pursuant to court order.
2Other Item 29. is transcription services.

 

   

 

 

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   OCTOBER 
                    
OTHER NON-OPERATING RECEIPTS          
8.  A/R Collections-Abandonment Refunds            $-   $6,198 
8.  Flow Thru Premiums  $-   $14,627   $14,627   $5,372 
8.  Transfer From LPIFS Checking Acct# 4069  $700,000   $350,000   $1,850,000   $250,000 
8.  Interest Income  $11,485   $3,879   $15,378   $3,747 
8.  Other Inc-dividends on pd out policies  $-   $46   $87      
8.  Other Income-Life Assets Trust S.A. Settlement  $-        $-   $77,998 
8.  Return of retainer  $-        $15,000      
8.  Reimbursements & Refunds-COBRA insurance  $2,029   $1,944   $4,386   $977 
8.  Reimbursements & Refunds-Employee Advance  $-        $20   $25 
8.  Reimbursements & Refunds-License & Fees  $-        $9      
8.  Reimbursements & Refunds-Travel  $-   $36   $406      
8.  Reimbursements & Refunds-Utilities                 $30 
8.  Reimbursements & Refunds-Other  $37        $37   $35 
8.  Total - Non-Operating Receipts  $713,551   $370,531   $1,899,950   $344,381 
                        
OTHER OPERATING DISBURSEMENTS          
25.  Premiums Advanced  $43,935   $192,190   $586,629   $715,090 
25.  Premiums-LPI Owned positions  $4,803        $25,703      
25.  Bank Fees (Charged & Reversed)  $670   $340   $1,565   $590 
25.  BK Premiums  $-        $941   $5,579 
25.  Courier Services  $-   $1,011   $6,497   $3,171 
25.  Employee Relations                 $200 
25.  Flow Thru Premiums  $-   $10,711   $28,729   $9,287 
25.  Licenses & Fees  $500   $503   $1,034   $1,894 
25.  Medical Records  $-   $337   $337      
25.  Medical Review Life Expectancy  $-        $700      
25.  Outside Services  $1,783   $1,982   $6,373   $1,669 
25.  Payroll Garnishment  $304   $304   $1,063   $304 
25.  Payroll-401K deductions  $9,290   $9,412   $32,498   $9,464 
25.  PES Operating Exp  $29,471   $35,556   $99,261      
25.  Software Licenses & Support  $5,152   $4,497   $9,649   $4,080 
25.  Policy Administration Expense  $11,465   $17,618   $29,083   $20,135 
25.  Refund Duplicate Payments                 $845 
25.  Subscriptions  $951   $213   $6,274   $507 
25.  Trust Fees/Cost Reimbursement  $19,487   $16,824   $64,618   $6,784 
25.  Employee Loan & Advances  $1,300   $20   $1,320      
25.  Total - Other Operating Disbursements  $129,111   $291,516   $902,274   $779,600 
                        
OTHER REORGANIZATION EXPENSES          
29.  Transcription Services  $126        $126      
29.               $-      
29.               $-      
29.  Total - Other Reorganization Expenses  $126   $-   $126   $- 

 

   

 

 

Monthly Operating Report

ACCRUAL BASIS-4

 

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

 

      SCHEDULE                
ACCOUNTS RECEIVABLE AGING  AMOUNT   AUGUST   SEPTEMBER   OCTOBER    
1.  0-30  $139,890   $43,274   $32,834   $669,205    
2.  31-60  $279,914   $280,577   $11,534   $37,952    
3.  61-90  $77,762   $212,053   $195,541   $6,472    
4.  91+  $12,721,787   $13,189,797   $13,402,278   $13,590,176    
5.  TOTAL ACCOUNTS RECEIVABLE  $13,219,353   $13,725,702   $13,642,187   $14,303,805   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   $8,242,385   $8,158,870   $8,820,488   1

 

AGING OF POSTPETITION TAXES AND PAYABLES  MONTH:   October 2015 
         
      0-30   31-60   61-90   91+     
TAXES PAYABLE  DAYS   DAYS   DAYS   DAYS   TOTAL 
1.  FEDERAL  $18,857                  $18,857 
2.  STATE  $9,329                  $9,329 
3.  LOCAL  $62,268                  $62,268 
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL TAXES PAYABLE  $90,454   $0   $0   $0   $90,454 
                             
6.  ACCOUNTS PAYABLE  $713,815   $7,825   $355,021   $789,894   $1,866,555 

 

STATUS OF POSTPETITION TAXES      MONTH:   October 2015    
      BEGINNING   AMOUNT       ENDING    
      TAX   WITHHELD AND/   AMOUNT   TAX    
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY    
1.  WITHHOLDING      $27,091   $18,067   $9,024  
2.  FICA-EMPLOYEE       $14,876   $9,959   $4,916    
3.  FICA-EMPLOYER       $14,876   $9,959   $4,916    
4.  UNEMPLOYMENT       $20   $20   $0    
5.  INCOME                 $0    
6.  OTHER (ATTACH LIST)                 $0    
7.  TOTAL FEDERAL TAXES  $0   $56,861   $38,005   $18,857    
STATE AND LOCAL             
8.  WITHHOLDING                 $0    
9.  SALES                 $0    
10.  EXCISE                 $0    
11.  UNEMPLOYMENT       $376   $226   $150    
12.  REAL PROPERTY  $0             $0    
13.  PERSONAL PROPERTY  $3,377   $58,890        $62,268   2
14.  OTHER (ATTACH LIST)  $10,173   $(994)       $9,179   3
15.  TOTAL STATE & LOCAL  $13,551   $58,273   $226   $71,597    
16.  TOTAL TAXES  $13,551   $115,134   $38,231   $90,454    

 

1These amounts are reported in detail on SUPPLEMENT TO MOR-1 under Item 15. Other Assets.
2The figures shown here do not include $5975.51 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.
3Item 14. Other is accrual of Texas Franchise Tax.

 

   

 

 

Monthly Operating Report

ACCRUAL BASIS-5

 

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

 

          MONTH:   October 2015    
BANK RECONCILIATIONS                   
      Account #1   Account #2   Account #3        
A. BANK:  Bank of Texas   Bank of Texas            
B. ACCOUNT NUMBER:  4080   4091            
C. PURPOSE (TYPE):  Checking   Checking      TOTAL    
1.  BALANCE PER BANK STATEMENT  $229,386   $3,571       $232,957  
2.  ADD: TOTAL DEPOSITS NOT CREDITED                 $0    
3.  SUBTRACT: OUTSTANDING CHECKS  $6,098             $6,098    
4.  OTHER RECONCILING ITEMS                 $0    
5.  MONTH END BALANCE PER BOOKS  $223,288   $3,571   $0   $226,859    
6.  NUMBER OF LAST CHECK WRITTEN   1360    1015              
                           
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        $7    
8.                          
9.                          
10.                          
11.  TOTAL INVESTMENTS            $0   $7    
                           
CASH                          
                           
12.  CURRENCY ON HAND                 $1,965   1
                           
13.  TOTAL CASH - END OF MONTH                 $228,831    

 

1Item 12. Currency On Hand includes:

 

Petty Cash  $1,000.00 
PayPal  $964.67 

 

   

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

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

 

          MONTH: October 2015  

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE OF  AMOUNT   TOTAL PAID 
NAME  PAYMENT  PAID   TO DATE 
1.  Mark Embry  Salaries/Expense Reimbursement  $13,741   $61,456 
2.  Advance Trust & Life Es  Premium Remittance/Cost Reimb  $152,988   $269,961 
3.  Life Partners Holdings, Inc.  Rent & Return deposit in error  $10,000   $111,898 
4.  LPI Financial Services, Inc.  Forward Platform Fees  $0   $1,938 
5.  Purchase Escrow Services, LLC  Premium Remittance/Cost Reimb  $579,019   $1,778,381 
6.  Colette Pieper  Salaries/Expense Reimbursement  $16,887   $65,983 
7.  Debora J. Carr  Salaries/Expense Reimbursement  $3,750   $16,875 
8.  TOTAL PAYMENTS TO INSIDERS     $776,384   $2,306,492 

 

PROFESSIONALS 2

 

      DATE OF COURT                  TOTAL    
      ORDER AUTHORIZING   AMOUNT    AMOUNT    TOTAL PAID    INCURRED    
 NAME  PAYMENT   APPROVED    PAID    TO DATE    &UNPAID     
1.  Asset Servicing Group                $505,818  
2.  Bridgepoint Consulting  10/29/15  $70,372             $606,217    
3.  Epiq Bankruptcy Solutions  05/22/15  $2,126,230        $533,773   $1,592,457    
4.  Kim Hinkle, Attorney at Law                    $125,526    
5.  MMS Advisors                    $217,600   3
6.  Munsch, Hardt, Kopf & Harr,P.C.                    $987,380    
7.  Thompson & Knight LLP               $3,434   $6,216,571    
8.  Tom Moran, US Trustee          $9,632   $9,632   $329,338    
9.  Phillips Murrah                    $59,316    
10.  Smith, Jackson, Boyer & Brovard, PLLC                    $45,603    
11.  Inventus, LLC               $25,000   $1,405    
12.  First Advantage Litigation               $6,000   $6,000    
13.  Predictive Resources                    $72,500    
13.  Barbara Pope                    $45,651    
14.  TOTAL PAYMENTS TO PROFESSIONALS          $9,632   $577,839   $10,765,732    

 

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   $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. Life Partners Holdings, Inc.  $10,000   $10,000   $0    
6.    TOTAL  $20,323   $19,416   $0    

 

1These lease payments are quarterly, not monthly.
2Professional fees and expenses estimated and accrued prior to May 19th are reflected only on the books of Life Partners Holdings, Inc.  Thereafter, professional fees and expenses reflect the estimated aggregate, unallocated fees and expenses for all of the Debtors, and are noted on each of the Debtors MORs.
3MMS Advisors incurred fees and expenses March 13th - May 18th in the estimated amount of $230,000.00 that are not included here since their retention has not been approved for this period of time.

 

   

 

 

Monthly Operating Report

ACCRUAL BASIS-7

 

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

 

  MONTH: October 2015

 

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.

Item 1. The Ice Age Collection and Egyption Replicas were sold pursuant to court order (Docket 1053).

Questionnaire Item 10. Past due amounts are mainly professional fees incurred after the filing date.

 

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.  06/14/2015- 06/14/2016  $  316.00  /month 

 

   

 



 

Exhibit 99.3

 

  Monthly Operating Report
  ACCRUAL BASIS

 

 

CASE NAME: LPI Financial Services, 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   2015
  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   11/20/2015
PRINTED NAME OF RESPONSIBLE PARTY   DATE
     
PREPARER:    
     
/s/ Colette Pieper   CEO
ORIGINAL SIGNATURE OF PREPARER   TITLE
     
Colette Pieper   11/20/2015
PRINTED NAME OF PREPARER   DATE

 

 

 

 

Monthly Operating Report
ACCRUAL BASIS-1

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

    SCHEDULE
AMOUNT		     MONTH
August 31, 2015		     MONTH
September 30, 2015		     MONTH
October 31, 2015		    
                           
ASSETS                                
1.   UNRESTRICTED CASH   $ 1,744,873     $ 694,146     $ 1,090,944     $ 1,028,203    
2.   RESTRICTED CASH                                  
3.   TOTAL CASH   $ 1,744,873     $ 694,146     $ 1,090,944     $ 1,028,203    
4.   ACCOUNTS RECEIVABLE (NET)   $ 2,741,107                           2
5.   INVENTORY                                  
6.   NOTES RECEIVABLE                                  
7.   PREPAID EXPENSES                                  
8.   OTHER (ATTACH LIST)                   $ 1,906     $ 44    
9.   TOTAL CURRENT ASSETS   $ 4,485,981     $ 694,146     $ 1,092,849     $ 1,028,247    
10.   PROPERTY, PLANT & EQUIPMENT                                  
11.   LESS: ACCUMULATED DEPRECIATION/DEPLETION                                  
12.   NET PROPERTY, PLANT & EQUIPMENT   $ 0     $ 0             $ 0    
13.   DUE FROM INSIDERS   $ 4,157,912                           1
14.   OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)                                  
15.   OTHER (ATTACH LIST)                                  
16.   TOTAL ASSETS   $ 8,643,892     $ 694,146     $ 1,092,849     $ 1,028,247    
POSTPETITION LIABILITIES                                  
17.   ACCOUNTS PAYABLE           $ 4,840     $ 1,906     $ 0    
18.   TAXES PAYABLE                                  
19.   NOTES PAYABLE                                  
20.   PROFESSIONAL FEES           $ 194,009     $ 227,757     $ 298,041    
21.   SECURED DEBT                                  
22.   OTHER (ATTACH LIST)           $ 650     $ 650     $ 325    
23.   TOTAL POSTPETITION LIABILITIES           $ 199,499     $ 230,313     $ 298,366    
PREPETITION LIABILITIES                                  
24.   SECURED DEBT                                  
25.   PRIORITY DEBT   unknown                          
26.   UNSECURED DEBT   $ 9,001     $ 1,062     $ 1,062     $ 1,062    
27.   OTHER (ATTACH LIST)                                  
28.   TOTAL PREPETITION LIABILITIES   $ 9,001     $ 1,062     $ 1,062     $ 1,062    
29.   TOTAL LIABILITIES   $ 9,001     $ 200,560     $ 231,375     $ 299,428    
EQUITY                                  
30.   PREPETITION OWNERS' EQUITY           $ 5,901,723     $ 5,901,723     $ 5,901,723    
31.   POSTPETITION CUMULATIVE PROFIT OR (LOSS)           $ 503,215     $ 1,436,474     $ 1,553,373    
32.   DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)           $ (5,911,353 )   $ (6,476,722 )   $ (6,726,278 ) 1
33.   TOTAL EQUITY           $ 493,586     $ 861,475     $ 728,819    
34.   TOTAL LIABILITIES & OWNERS' EQUITY           $ 694,146     $ 1,092,849     $ 1,028,247    

 

1This is Intercompany Due From Life Partners, Inc. reported on Schedule B Item 16 and shown above under Item 13. Due From Insiders.
2The Debtor LPIFS records receipts on a cash basis and accordingly, does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.

  

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-1

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

COMPARATIVE BALANCE SHEET

 

      SCHEDULE
AMOUNT		   MONTH
August 31, 2015		   MONTH
September 30, 2015		   MONTH
October 31, 2015		 
CURRENT ASSETS        
8.  PREMIUMS BEING FORWARDED       $0   $1,906   $44 
8  TOTAL OTHER CURRENT ASSETS       $0   $1,906   $44 
                        
POSTPETITION LIABILITIES          
22.  US TRUSTEE FEES       $650   $650   $325 
22  TOTAL OTHER POSTPETITION LIABILITIES       $650   $650   $325 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-2

 

CASE NAME: LPI Financial Services, Inc.    
   
CASE NUMBER: 15-40289 (Jointly Administered)    

 

INCOME STATEMENT  JULY   AUGUST   SEPTEMBER   OCTOBER 
REVENUES                        
1.  GROSS REVENUES  $43,875   $52,937   $1,032,009   $214,446 
2.  LESS: RETURNS & DISCOUNTS                    
3.  NET REVENUE  $43,875   $52,937   $1,032,009   $214,446 
COST OF GOODS SOLD          
4.  MATERIAL                    
5.  DIRECT LABOR                    
6.  DIRECT OVERHEAD                    
7.  TOTAL COST OF GOODS SOLD  $0   $0   $0   $0 
8.  GROSS PROFIT  $43,875   $52,937   $1,032,009   $214,446 
OPERATING EXPENSES          
9.  OFFICER / INSIDER COMPENSATION                    
10.  SELLING & MARKETING                    
11.  GENERAL & ADMINISTRATIVE  $3,322   $24,543   $375   $26,817 
12.  RENT & LEASE                    
13.  OTHER (ATTACH LIST)                    
14.  TOTAL OPERATING EXPENSES  $3,322   $24,543   $375   $26,817 
15.  INCOME BEFORE NON-OPERATING INCOME & EXPENSE  $40,553   $28,393   $1,031,634   $187,628 
OTHER INCOME & EXPENSES          
16.  NON-OPERATING INCOME (ATTACH LIST)                    
17.  NON-OPERATING EXPENSE (ATTACH LIST)                    
18.  INTEREST EXPENSE                    
19.  DEPRECIATION / DEPLETION                    
20.  AMORTIZATION                    
21.  OTHER (ATTACH LIST)                    
22.  NET OTHER INCOME & EXPENSES  $0   $0   $0   $0 
REORGANIZATION EXPENSES          
23.  PROFESSIONAL FEES       $194,009   $98,376   $65,916 
24.  U.S. TRUSTEE FEES  $(3,900)       $0   $4,813 
25.  OTHER (ATTACH LIST)            $0   $0 
26.  TOTAL REORGANIZATION EXPENSES  $(3,900)  $194,009   $98,376   $70,729 
27.  INCOME TAX                    
28.  NET PROFIT (LOSS)  $44,453   $(165,616)  $933,258   $116,900 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-3

 

CASE  NAME: LPI Financial Services, Inc.  
     
CASE  NUMBER: 15-40289 (Jointly Administered)  

 

   MONTH   MONTH   QUARTER   MONTH   
CASH RECEIPTS AND DISBURSEMENTS  August 31, 2015   September 30, 2015       October 31, 2015   
1.  CASH - BEGINNING OF MONTH  $1,363,573   $694,146        $1,090,944   
RECEIPTS FROM OPERATIONS                      
2.  CASH SALES  $52,937   $1,032,009   $1,128,821   $216,308   
COLLECTION OF ACCOUNTS RECEIVABLE                      
3.  PREPETITION            $0        
4.  POSTPETITION            $0        
5.  TOTAL OPERATING RECEIPTS  $52,937   $1,032,009   $1,128,821   $216,308   
NON-OPERATING RECEIPTS                      
6.  LOANS & ADVANCES (ATTACH LIST)            $0        
7.  SALE OF ASSETS            $0        
8.  OTHER (ATTACH LIST)       $55,451   $55,451   $8,632   
9.  TOTAL NON-OPERATING RECEIPTS  $0   $55,451   $55,451   $8,632   
10.  TOTAL RECEIPTS  $52,937   $1,087,460   $1,184,272   $224,939   
11.  TOTAL CASH AVAILABLE  $1,416,510   $1,781,605        $1,315,883   
OPERATING DISBURSEMENTS                      
12.  NET PAYROLL            $0        
13.  PAYROLL TAXES PAID            $0        
14.  SALES, USE & OTHER TAXES PAID            $0        
15.  SECURED / RENTAL / LEASES            $0        
16.  UTILITIES            $0        
17.  INSURANCE       $95,216   $95,216        
18.  INVENTORY PURCHASES            $0        
19.  VEHICLE EXPENSES            $0        
20.  TRAVEL            $0        
21.  ENTERTAINMENT            $0        
22.  REPAIRS & MAINTENANCE            $0        
23.  SUPPLIES  $22,186   $4,786   $26,972   $25,513  1
24.  ADVERTISING            $0        
25.  OTHER (ATTACH LIST)  $700,178   $405,879   $1,908,159   $261,842   
26.  TOTAL OPERATING DISBURSEMENTS  $722,364   $505,881   $2,030,347   $287,355   
REORGANIZATION EXPENSES                      
27.  PROFESSIONAL FEES       $184,781   $184,781        
28.  U.S. TRUSTEE FEES            $325   $325   
29.  OTHER (ATTACH LIST)            $0        
30.  TOTAL REORGANIZATION EXPENSES  $0   $184,781   $185,106   $325   
31.  TOTAL DISBURSEMENTS  $722,364   $690,662   $2,215,452   $287,680  2
32.  NET CASH FLOW  $(669,428)  $396,798   $(1,031,181)  $(62,741)  
33.  CASH - END OF MONTH  $694,146   $1,090,944        $1,028,203   

 

1 Item 23. Supplies includes $25,000 of postage.

2 Total Disbursements includes the following amounts that are NOT disbursements, but are transfers of funds between bank

accounts (from LPI Financial Services account to Life Partners, Inc. account) for the periods shown below.

 

August 31, 2015  $700,000.00 
September 30, 2015  $350,000.00 
October 31, 2015  $254,686.04 

 

 

 

 

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

 

CASE  NAME: LPI Financial Services, Inc.  
     
CASE  NUMBER: 15-40289 (Jointly Administered)  

 

   MONTH   MONTH   QUARTER   MONTH 
CASH  RECEIPTS AND DISBURSEMENTS  August 31, 2015   September 30, 2015       October 31, 2015 
NON-OPERATING RECEIPTS (OTHER)                    
8.  DIVIDENDS FORWARD TO LPI            $0      
8.  FLOW THRU PREMIUMS       $55,451   $55,451   $3,946 
8.  PREMIUMS RETURNED            $0      
8.  SPOILED POSTAGE REFUND            $0      
8.  RECEIPTS TO BE FORWARDED TO LPI            $0   $4,686 
9.  TOTAL  NON-OPERATING  RECEIPTS  $0   $55,451   $55,451   $8,632 
OPERATING  DISBURSEMENTS                    
25.  BANK FEES  $114   $365   $1,131   $1,294 
25.  CREDIT CARD PROCESSING FEES  $10   $10   $30   $10 
25.  DIVIDENDS FORWARD TO LPI            $0      
25.  FLOW THRU PREMIUMS       $55,451   $56,890   $5,852 
25.  PREMIUMS RETURNED            $0      
25.  TRANSFER TO LPI  $700,000   $350,000   $1,850,000   $254,686 
25.  TRANSFER TO LPI BANK ACCOUNT            $0      
25.  LICENSES & FEES  $54   $54   $108      
26.  TOTAL OPERATING  DISBURSEMENTS (OTHER)  $700,178   $405,879   $1,908,159   $261,842 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-4

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

ACCOUNTS RECEIVABLE AGING  SCHEDULE
AMOUNT		   MONTH
August 31, 2015		   MONTH
September 30, 2015		   MONTH
October 31, 2015		 
                        
1.  0-30                    
2.  31-60  $803,662                
3.  61-90                    
4.  91+  $1,937,445                
5.  TOTAL ACCOUNTS RECEIVABLE  $2,741,107   $0   $0   $0 
6.  AMOUNT CONSIDERED UNCOLLECTIBLE                    
7.  ACCOUNTS RECEIVABLE (NET)  $2,741,107   $0   $0   $0 

 

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: October 2015  

 

      0-30   31-60   61-90   91+     
TAXES PAYABLE  DAYS   DAYS   DAYS   DAYS   TOTAL 
1.  FEDERAL                      $0 
2.  STATE                      $0 
3.  LOCAL                      $0 
4.  OTHER (ATTACH LIST)                      $0 
5.  TOTAL TAXES PAYABLE  $0   $0   $0   $0   $0 
                             
6.  ACCOUNTS PAYABLE  $0                  $0 

 

STATUS OF POSTPETITION TAXES MONTH: October 2015  

 

      BEGINNING   AMOUNT       ENDING 
      TAX   WITHHELD AND/   AMOUNT   TAX 
FEDERAL  LIABILITY   0R ACCRUED   PAID   LIABILITY 
1.  WITHHOLDING                 $0 
2.  FICA-EMPLOYEE                 $0 
3.  FICA-EMPLOYER                 $0 
4.  UNEMPLOYMENT                 $0 
5.  INCOME                 $0 
6.  OTHER (ATTACH LIST)                 $0 
7.  TOTAL FEDERAL TAXES  $0   $0   $0   $0 
STATE AND LOCAL                    
8.  WITHHOLDING                 $0 
9.  SALES                 $0 
10.  EXCISE                 $0 
11.  UNEMPLOYMENT                 $0 
12.  REAL PROPERTY                 $0 
13.  PERSONAL PROPERTY                 $0 
14.  OTHER (ATTACH LIST)                 $0 
15.  TOTAL STATE & LOCAL  $0   $0   $0   $0 
16.  TOTAL TAXES  $0   $0   $0   $0 

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-5

 

CASE NAME: LPI Financial Services, Inc.
   
CASE NUMBER: 15-40289 (Jointly Administered)

 

  MONTH: October 2015  

 

BANK RECONCILIATIONS

 

      Account #1   Account #2   Account #3     
A.  BANK:                    
B.  ACCOUNT NUMBER:   4069             TOTAL 
C.  PURPOSE (TYPE):                    
1.  BALANCE PER BANK STATEMENT  $1,028,232             $1,028,232 
2.  ADD: TOTAL DEPOSITS NOT CREDITED                 $0 
3.  SUBTRACT: OUTSTANDING CHECKS  $152             $152 
4.  OTHER RECONCILING ITEMS  $123             $123 
5.  MONTH END BALANCE PER BOOKS  $1,028,203   $0   $0   $1,028,203 
6.  NUMBER OF LAST CHECK WRITTEN   1020                

 

INVESTMENT ACCOUNTS

 

       DATE OF   TYPE OF   PURCHASE   CURRENT 
BANK, ACCOUNT NAME & NUMBER  PURCHASE   INSTRUMENT   PRICE   VALUE 
7.                       
8.              
9.                       
10.                       
11.  TOTAL INVESTMENTS            $0   $0 
                        
CASH                 
                        
12.  CURRENCY ON HAND                 $0 
                        
13.  TOTAL CASH - END OF MONTH             $1,028,203 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-6

 

CASE  NAME: LPI Financial Services, Inc.
   
CASE  NUMBER: 15-40289 (Jointly Administered)

 

MONTH: October 2015

 

PAYMENTS TO INSIDERS AND PROFESSIONALS

 

INSIDERS
      TYPE  OF  AMOUNT   TOTAL PAID 
   NAME  PAYMENT   PAID    TO DATE 
1.  Advance Trust & Life Escrow Services  Premium Remittance  $5,808   $88,850 
2.  Purchase Escrow Services, LLC  Premium Remittance  $44   $3,461 
3.                
4.                
5.                
6.  TOTAL  PAYMENTS TO  INSIDERS     $5,852   $92,311 

 

PROFESSIONALS      
      DATE  OF  COURT
ORDER AUTHORIZING		  AMOUNT   AMOUNT   TOTAL PAID   TOTAL
INCURRED		      
   NAME  PAYMENT   APPROVED    PAID    TO DATE   & UNPAID      
1.  Asset Servicing Group                    $505,818      
2.  Bridgepoint Consulting  10/29/15  $70,372             $606,217      
3.  Epiq Bankruptcy Solutions  05/22/15  $2,126,230        $533,773   $1,592,457      
4.  Kim Hinkle, Attorney at Law                    $125,526      
5.  MMS Advisors                    $217,600     5
6.  Munsch, Hardt, Kopf & Harr,P.C.                    $987,380      
7.  Thompson & Knight LLP               $3,434   $6,216,571      
8.  Tom Moran, US Trustee          $9,632   $9,632   $329,338      
9.  Phillips Murrah                    $59,316      
10.  Smith, Jackson, Boyer, & Bobard, PLLC                    $45,603      
11.  Inventus               $25,000   $1,405      
12.  First Advantage Litigation               $6,000   $6,000      
13.  Predictive Resources                    $72,500      
14.  Barbara Pope               $4,355   $41,297      
15.  TOTAL  PAYMENTS TO  PROFESSIONALS          $9,632   $577,839   $10,765,732     3

  

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.                  
2.                  
3.                  
4.                  
5.                  
6.  TOTAL   $0   $0   $0 

 

3Professional fees and expenses estimated and accrued prior to May 19th are reflected only on the books of Life Partners Holdings, Inc.  Thereafter, professional fees and expenses reflect the estimated aggregate, unallocated fees and expenses for all of the Debtors, and are noted on each of the Debtors MORs.

5MMS Advisors incurred fees and expenses March 13th - May 18th in the estimated amount of $230,000.00 that are not included here since their retention has not been approved for this period of time.

 

 

 

 

Monthly Operating Report

ACCRUAL BASIS-7

 

CASE  NAME: LPI Financial Services, Inc.
   
CASE  NUMBER: 15-40289 (Jointly Administered)

 

MONTH: October 2015

 

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.

 

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  
               
               
               

 

 

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