Lifetime Receiver H. Thomas Moran II, Receiver of LifeTime Capital, Inc.


Investors: You have probably received the latest from Ernest Bustos again asking for money for his IP fund. He suggests that you investors can avoid the proposed sale of the portfolio by simply taking it over.
He fails to recognize that this is precisely what the receiver attempted to do when he sought investor participation in premium payments.
Unfortunately, most of you either could not or would not make those payments. As a result, the receiver does not have the four million dollars it takes to pay premiums for one year and sale is the only option. Before you consider sending Bustos money I suggest you demand to see the books of the IP fund to determine what he has done with the funds some have already sent and see if the fund has the capital necessary to make the premium payments.

Andrew Storar, Examiner


Investors: The Court held a hearing regarding several matters on 5/9.

As you know from previous postings, the Tonti Group has filed a motion to restructure their bid. This is in essence an increase in the bid and offers guaranteed sums as well as a cash alternative. Tonti's attorney spoke in favor of the motion and Silverpoint opposed it.

As an alternative, Tonti suggested the Court withhold ruling on the Fairness issue for at least 72 hours during which Tonti will attempt to negotiate a resolution with Silverpoint. The Judge indicated she would do this. I have no idea whether Silverpoint will negotiate, but the time is available.

Next was the fairness hearing. The Receiver described his familiarity with other portfolio sales and opined that the Silverpoint bid is fair and reasonable. The sale price approaches about 21% of investment dollars. After repayment of loans and other items the net to you should be in the 12%-13% range from the sale only. It is probable that other amounts from satellite litigation and other collection efforts will generate additional distributions in the future. It can't be said how much or when.

When the rulings come out, I'll post something here.

Contact me with questions or concerns.

Andrew Storar, Examiner


Investors: By way of supplement and correction of recent messages, be advised that the Silverpoint bid was $19,375,000.00 cash not $19,500,000.00. Also the recent motion by Tonti included the guaranteed payment over seven years, or in the alternative a cash payment of $19,500,000.00.
Both Silverpoint and Tonti agreed to pay March and April premiums as well.

Andrew Storar, Examiner


Investors: Today the Tonti Group filed a motion to restructure it's bid.
The motion is posted on this website for you to read. In essence Tonti wishes to guarantee payments interim payments to occur between the initial down payment and the final payment of $6.5 million resulting in a guaranteed payout of $27.5 million over the seven year period plus premium payments for March and April.

I expect Silverpointe will respond to this motion and I'll see that it is posted as well.

The fairness hearing remains set for May 9th.

Contact me with any questions or concerns.

Andrew Storar, Examiner