Investors: We had a telephone conference with the Court on Friday July 15. The main topic was the lack of maturities in the portfolio. As I indicated in a previous message, without maturities there is no source of funds to pay premiums to keep the policies from lapsing. Continued borrowing of funds is not a long term solution as the interest rates on this type of financing are exorbitant.
It is probable that the Receiver will contact you soon to reimplement your contributing to premium payments as was done before he was appointed. Details are being worked on regarding those payments having a priority status at the time of a distribution and the like.
Decisions will have to be made whether to maintain the portfolio or attempt to sell it. There are many, many factors to consider. I will be seeking permission of the Court to provide you with a substantial amount of information and conduct a survey of your preference regarding the future of the portfolio. I hope that will occur in the next 45 to 60 days.
Contact me if you have questions or concerns.
Andrew Storar, Examiner