“Judge to Approve Life Partners Plan for Investors”
Life Partners Inc. customers whose investments were once threatened by the Waco, Texas, firm’s financial problems will be able to transfer their investments to another firm after a bankruptcy judge agreed to sign off on a plan that lays out the procedures for that transfer.
Judge Russell Nelms said in court Friday that he would confirm the plan put forth by Life Partners’ lawyers, which calls for life-settlement firm Vida Capital Inc. to take over the administration of Life Partners’ roughly 3,400 life-insurance policies. Under the plan, Life Partners’ roughly 22,000 customers could vote to cancel or keep their investments.
David Bennett, a bankruptcy lawyer who helped craft the plan, said that Life Partners risked running out of money to pay policies after filing for bankruptcy in January 2015, which could have led some of the policies in the company’s $2.3 billion portfolio to lapse and leave customers with no monetary recovery.
“We had a number of people who life savings were in jeopardy when this case was filed,” Mr. Bennett said.