Life Premium Fund, SPC - In Official Liquidation

FAQs

The Joint Official Liquidators (the “Liquidators”) understand that this is a difficult time for investors and there will be considerable uncertainty as to what may happen following the Company being placed into liquidation. The liquidation is at a very early stage but the Liquidators have prepared this list of frequently asked questions and answers to help deal with the investor’s initial queries.

1. What is the status of the Company?

The Company has been placed into Official Liquidation in the Cayman Islands. A winding up order was made in relation to the Company on 6 March 2015 (“the Order”) by the Grand Court of the Cayman Islands (“the Court”).  The Order was made following the presentation of a winding up petition by of one of the investors (the “Petition”). In accordance with the provisions of the Order, David Griffin and Andrew Morrison of FTI Consulting in the Cayman Islands were appointed as Liquidators of the Company with effect from the date of the Order. 

2. What is the role of the Joint Official Liquidators?

The Liquidators act as independent officers of the Court. Their main function is to collect, realise and distribute the assets of the Company to its creditors and wind up the Company’s affairs. For the purposes of acting in this role, the Liquidators are empowered, as agents of the Company, to collect, take possession, retain, manage and realise the Company’s property.  In addition, the Liquidators are empowered to investigate the reasons surrounding the failure of the Company and its affairs generally. The Liquidators are in the process of collecting the Company’s books and records from the Company’s directors and other service providers in order to conduct an independent assessment of the financial position of the Company.

3. When will I be updated regarding the progress of the liquidation?

The Liquidators intend to give notice of a meeting of creditors and/or investors within the 28 days of their appointment. The purpose of the meeting is to:

  1. provide an update on the status of the liquidation; and
  2. elect a liquidation committee of creditors and/or investors (“Committee”).

Formal notification of the meeting will be sent you in due course and you will have the opportunity to attend or be represented at the meeting.  A report of the Liquidators’ progress and initial findings in the liquidation will be circulated in advance of and discussed at the meeting. Creditors and/or investors will have the opportunity to ask questions at the meeting.

Given the large number of investors based in Argentina, the Liquidators expect that the meeting will take place in Buenos Aires, Argentina. However, arrangements will be made for creditors and investors to participate in the meeting by telephone conference.

Additional information as to the function and powers of a liquidation committee will be provided when the Committee is being formed. However, the primary role of a liquidation committee will be to represent the interests of the general body of creditors and/or investors and act as a consultative body to assist the Liquidators.

4. How much of my investment am I likely to get back and what is the anticipated timing of any return?

It is too early in the liquidation process to make any estimate of the timing or amount of the  return to investors. As soon as the Liquidators are in a position to provide further information, this will be communicated to investors.

5. Are the Liquidators aware of my investment in the Company?

As part of the Liquidators’ assessment of the financial position of the Company, they are seeking to establish from the books and records of the Company the amount that is owed to each investor. The Liquidators will write to you prior to making any distribution of the Company’s assets to confirm details of your investment and give you the opportunity to raise any queries. In the meantime, the Liquidators will contact you should additional information be required from you.

5. How will the Joint Official Liquidators’ costs and expenses be paid?

The Liquidators’ fees and expenses will be paid out of the Company’ assets, when there are sufficient amounts available and after certain priority expenses have been paid. The basis and amount of the  Liquidators’ fees must be approved by the Committee and the Court. Information in relation to the Liquidators’ costs and expenses will be reported to creditors and investors on a periodic basis during the liquidation.

6. Who are FTI Consulting?

FTI Consulting is a global business advisory firm with over 4,300 employees based in 27 countries and 81 cities worldwide.  FTI Consulting operates globally through a network of wholly owned and locally registered subsidiaries. The Corporate Finance/Restructuring practice in the Cayman Islands specialises in assisting companies and their stakeholders in relation to a wide variety of engagements, including formal insolvency appointments, restructuring advisory services, enforcement of security, fraud and other investigations, commercial disputes and regulatory intervention. Given the international and complex nature of the majority of assignments in the Cayman Islands, our local team of professionals is often supported by experts from various disciplines in our international offices.

In addition to the Cayman Islands, FTI Consulting has a significant presence in the other key jurisdictions which are likely to be relevant to the liquidation of the Company. In particular, FTI Consulting has 38 offices across the United States and seven throughout Latin America, two of which are located in Argentina. The Liquidators will therefore have the ability to draw on local staff and resources from those offices, as required.

Both Mr Griffin and Mr Morrison have considerable experience dealing with liquidations of distressed investment funds and other companies registered in the Cayman Islands. Both of the Liquidators have over 15 years of experience in insolvency and restructuring matters, including several years based in the Cayman Islands.

7. Who should I contact if I need further information?

Key information and documentation in respect of the progress of liquidation will be posted to the website periodically.

If you have further questions, these can be addressed by the Liquidators at the first meeting of investors. As noted above, additional information will also be provided in the Liquidators’ report, which will be circulated to all investors in advance of the first meeting.

In the meantime, if you have any urgent queries please either call the Cayman Islands office of FTI Consulting on + 1 345 743 6830 or send an email to lpfliquidation@fticonsulting.com.

Alternatively, if you prefer to speak with a member of the Liquidators’ staff in Spanish, please call Diego Haim of the Argentina office of FTI Consulting on +54 11 4785 9007.

The Liquidators’ postal address in the Cayman Islands is: PO Box 30613, KY1-1203 Grand Cayman, Cayman Islands.

Any correspondence sent by international courier should be sent to 2D Landmark Square, 64 Earth Close, Seven Mile Beach, KY1-1203, Grand Cayman, Cayman Islands.