Melville Capital, LLC Brokers Sale of Initially Undisclosed Life Insurance Policy, Delivers $460,000 to Chapter 7 Estate
Policy was originally deemed worthless after discovery and thorough investigation.
New York – August, 2014
Melville Capital, LLC brokered the sale of a life insurance policy that was initially undisclosed by the debtor and then, once discovered, was thought to be worthless because the policy had zero cash surrender.
Hubert Moore Lumber Company, Inc. (Case No. 13-71347-JTL – Middle District of Georgia) filed for bankruptcy with what appeared to be “little if any assets”, according to Rob Matson of Akin, Webster & Matson and Counsel to the Chapter 7 Trustee. Despite this initial assessment, and to the credit of Matson and his client, several unscheduled life insurance policies were discovered after a thorough investigation.
Matson contacted Melville Capital’s Senior Vice President, Brad Naso, to review these life insurance assets. Naso determined that one policy was potentially of value and Melville was retained on a success fee basis. After a comprehensive sales process, the policy was sold for $460,000. Throughout the process, Melville advised Matson on the inner workings of a “life settlement transaction” and assisted him in navigating the intersection between his client’s concerns and those of the purchaser. Matson commented, “[… [the Trustee] was able to liquidate what appeared to be a worthless asset for a very significant amount of money for the benefit of the estate”.
About Melville Capital
Melville Capital focuses on monetizing and liquidating existing life insurance policies and other cash flow related assets. With offices in New York, Los Angeles, Florida and Scottsdale, Melville is the country’s premier Life Settlement Broker practicing in the area of restructuring and insolvency. In insolvency matters, there is often substantial cash flow generated to individuals/companies in transition, policy owners, Turnaround and Bankruptcy advisors, and Trustees. Melville represents the policy owner and works with the insured and referral source in negotiating and accepting bids from competing Institutional Investors and handles all aspects of the transaction. The net result is a lump sum cash settlement that is often much greater than the cash surrender value and further relieves the policy owner of all future premium payments.
Melville has served in the capacity of life settlement broker to a variety of individuals and entities, including in bankruptcy cases. For example, Melville has been retained in the following bankruptcy cases, among others: (i) In re Princeton Ski Shop, Inc. (Case No. 07-26206) (District of New Jersey) (retained by the Official Committee of Unsecured Creditors); (ii) In re Ronco Corporation, et al. (Jointly Administered under Case No. 1:07-12000 GM) (Central District of California) (retained by the Chapter 7 Trustee); (iii) In re Thomas K. Helton Inc. d/b/a Home Lumber Company (Case No. 07-12671-JKC-11) (Southern District of Indiana) (retained by Liquidating Agent); (iv) In re Wilder, (Case No. 09-71141 (MPG)) (Central District of Illinois, Eastern Division) (retained by the Chapter 7 Trustee); (v) In re Bokavich, (Case No. 09-11106-WCH) (District of Massachusetts, Eastern Division) (retained by the Chapter 7 Trustee); and (vi) In re M. Fabrikant & Sons, Inc. and Fabrikant – Leer International, Ltd., (Case No. 06-12737) (Southern District of New York) (retained by the Client); (vii) In re Life Fund 5.1, LLC (“A&O”), (Case No. 09-32672) Northern District of Illinois, Eastern Division) (retained by the Trustee); (viii) In re SageCrest II LLC, et al. , (Case No. 08-50754) (District of Connecticut, Bridgeport Division) (retained by the Wind-Down and Workout Manager; (ix) In re Peregrine Financial Group, et al. (Case No. 1:12-cv-05383) (Northern District of Illinois) (retained by the Receiver).