Kentucky Central Life (KY)
Asset Sales Continue
Task Force representatives attended the KCL Liquidator's Asset Management Committee meeting in Frankfort on May 4. The Liquidator's real estate advisors, Creamer Realty Consultants, reported that in the first quarter of 1999, KCL closed sales on five properties resulting in $37.5 million in net proceeds. The first quarter activity brings the total net proceeds to $115.2 million from the sale of 61 assets. In addition, eight loans have been collected, netting $5.9 million. Proceeds from asset sales thus far have exceeded net book value by $34.4 million. Net book value of the remaining 17 properties is $38.2 million.
Following the Asset Management Committee meeting, task force representatives met with Special Deputy Liquidator Martin Huelsmann and counsel for an update on pending litigation.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe Executive Life (CA)PGAs Pay Installment; Bullet True Up to Follow
Participating guaranty associations met their obligation to pay the eighth installment billing from Aurora, which totaled $65.9 million and was due April 30. The next obligation is Aurora's second additional installment billing, or bullet payment true up in the amount of $3.3 million, due by noon on June 3.
Participating guaranty associations received this week a report from Arthur Andersen on the bullet payment true up, which did not note any substantial problems with the Aurora billing. Also sent this week was Arthur Andersen's report on Aurora's defeasance schedule, as well as a related Tillinghast report on the possible impact of mortality factors on a state's defeasance decision. PGAs with questions about either report may call Angela Franklin at NOLHGA or Kevin Stephens of Arthur Andersen at 202.481.8485.
Also, the Alabama, Indiana, Maryland, New Mexico and Wyoming Associations have indicated that they received letters from Unisys counsel seeking settlement of its claims. As noted in last week's Wire, PGAs that receive such letters should contact Angela Franklin immediately.
Task Force Chair - Art Dummer; Staff Contact - American Standard Life (OK)NOLHGA, Washington File For Intervention
On May 3, NOLHGA and the Washington Life and Disability Insurance Guaranty Association filed for intervention in the American Standard Life liquidation proceedings. NOLHGA and the Washington Association are seeking intervention for the purpose of opposing a petition to vacate ASL's liquidation order filed by David Nicholas, the company's former owner. In their motion to intervene, NOLHGA and the Washington Association recount David Nicholas' involvement in the long and often tortured history of ASL, including the fact that as recently as last July, Nicholas entered into a settlement agreement whereby he withdrew his appeal of the liquidation order and agreed not to interfere with the sale of ASL's business. A ruling on the NOLHGA/Washington intervention motion is anticipated shortly.
Task Force Chair - Andrea Bowers; Staff Contact - Bill O'Sullivan Confederation Life (MI)Reimbursements to be Mailed
Reimbursement checks totaling just over $2 million will be mailed to guaranty associations the week of May 10. This refund represents expense reimbursements from Confederation Life for consultant expenses and NOLHGA internal expenses covering the period January, 1998 through April 21, 1999. Included in the refund is interest earned on the escrow account utilized by NOLHGA. Please contact Jay Jagolta at 703.787.4109 in the event you do not receive your check.
Task Force Chair - Chuck LaShelle; Staff Contact -MPC and ADS Assessments Due
First quarter assessments for 1999 Members' Participation Council insolvency expenses and Assessment Data Survey expenses were mailed to affected guaranty associations on May 4. Prompt payment is greatly appreciated. Please direct assessment questions to Jay Jagolta at 703.787.4109.
Staff Contact - Paul PetersonCALENDAR/CONFERENCE CALLS
May 10 InterAmerican Task Force Conference Call, Noon, ET
May 11 Legal Committee, Wyndham Garden Hotel (O'Hare Airport), Chicago, IL, 10am
May 19-21 Members' Participation Council Meeting, The Westin, Washington, DC