Updates

Update - April 12, 2007

General News

Claim forms have been mailed to all investors that are in the ABC Viaticals data base. If you do not have a claim form, please contact Stephen M. Tomasky at stomasky@qsclpc.com or 214 880 1812.

All premiums continue to be paid current. The Receiver has secured and signed the appropriate documents for a line of credit in the amount of $5,000,000 secured by the insurance policies in the portfolio. This will assure that premiums will continue to be paid while the strategies for the portfolio are developed further.

At present, we are unaware of any maturity that would pay funds to the Receivership estate. The possibility of maturities is monitored closely every week.

All strategies outlined in the February 8 update are still under consideration. We have received numerous contacts from potential buyers indicating and interest in the portfolio. These are serious buyers made up of mostly large institutional entities. As a result of a meeting among the Receiver, Examiner, counsel and our insurance consultant, we are in the process of updating as much information on the policies as is reasonably possible in order to create a more current picture of the portfolio for ourselves and potential buyers. That process includes, to the extent possible, getting the cost of insurance as low as possible, obtaining policy illustrations that show future costs and updating medicals to the extent possible.

The claims process is underway. If you are an investor, you should be completing a claim form as instructed on the form and delivering that form to the Receiver.

The investigation of the bonding companies continues. The Receiver has filed suit against IFS and its principals in an effort to recover premiums paid for bonds believed to be fictitious. The Receiver and the Examiner will in the very near future open lines of communication with Albatross in an attempt to verify their ability and intention to perform if that day comes.

The Receiver and Examiner appreciate the cooperation of all of the investors and your patience with the time it takes to develop a solution in this matter.