Abacus Settlements, LLC Purchases Life Insurance Portfolio with a Face Value of $50 Million from Federal Receiver
NEW YORK, July 26 /PRNewswire/ — Abacus Settlements, LLC, a life settlement provider located in New York City, today announced that it had concluded a transaction to purchase a portfolio of life insurance policies with a face value of $50 million from the federal receiver for an insolvent life settlement finance company. The transaction follows the approval on July 1, 2005 by the U. S. District Court in the Middle District of Florida of a motion by the receiver, David Levine of Miami-based law firm Tew Cardenas LLP, recommending approval for the sale of the RFG Life Insurance Policy Portfolio to Abacus.
“We are pleased to have been recommended by the receiver and to have been approved by the Court to participate in this win-win transaction,” said Craig Seitel, CEO of Abacus Settlements. “Our purchase of the RFG Portfolio helps Abacus reach its long-term investment goals, while providing an opportunity for the receiver to maximize expeditious recovery to the creditors in the RFG Portfolio.” Abacus Settlements was recommended by Levine to the Receivership Court following a bid process undertaken earlier this year in an effort to obtain the highest possible return to the investors and creditors of the receivership estate.
Abacus submitted the highest and best bid for the purchase of the RFG portfolio, representing an immediate cash outlay of approximately $16.6 million, thus enabling immediate payment distributions to RFG investors. “The proceeds of the Abacus sale, in combination with other recoveries by the receivership, will provide over $22 million from which additional distributions to investors can be quickly made,” said Levine. “The offer submitted by Abacus represented the highest price in an open market bid process, and I believe the sale of the RFG Portfolio to Abacus represents the best available balance between risk and return for the investors — both in dollars and in speed of payment,” Levine added.