Updates

Update - December 19, 2006

The Receiver has presented his Preliminary Report in this matter. A copy of the Report and its Exhibits can be accessed by this link (Exhibit A, Exhibit B, Exhibit C). In the Report, the Receiver summarizes the present financial condition of the entities that have been placed in receivership, including ABC Viatical, Inc. The Receiver specifically discusses the existing cash limitations. According to the Receiver, there exists approximately $4.4 million from which to pay all premiums and administrative expenses. Against that, initial reports from the involved carriers suggested a premium obligation for just 2007 to be in excess of $6.1 million. As of today, the Receiver reports that the carrier's formal responses to written inquiries place the 2007 premium obligation at closer to $7.36 million. Many policies have projected life expectancies well beyond 2007.

The Receiver is presently exploring alternatives to address the situation. The policies have some available cash value reserves, but not enough to bridge the obvious gap. The Court has approved a line of credit, but this will necessarily be a loan against the portfolio as a whole. The Examiner is likewise conducting due diligence on these same issues, as well as working to obtain investor views. Investor comments by way of e-mail to this site are particularly encouraged.