Life Partners trustee granted court approval of $10 million DIP loan

By Caroline Salls

Pittsburgh, Aug. 9 – Life Partners Holdings, Inc. Chapter 11 trustee H. Thomas Moran II received court approval of an up to $10 million debtor-in-possession facility from Vida Capital, Inc., according to an order filed Monday with the U.S. Bankruptcy Court for the Northern District of Texas.

Moran said the DIP financing will enable the Life Partners debtors to continue to operate their businesses, preserve the value of their policies and seek confirmation of a plan of reorganization.

The facility will mature on the earliest of Nov. 30, the effective date of the company’s joint plan, the earlier of the effective date of an alternate plan and the day after confirmation of an alternate plan if specified in the order, acceleration of the credit agreement and dismissal or conversion of the Life Partners case.

Interest will accrue at a rate of 8%.

Waco, Texas-based Life Partners is engaged in the secondary market for life insurance. The company filed for bankruptcy on May 20, 2015. Its Chapter 11 case number is 15-40289.

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