No. 89: Life Partners—The Bankruptcy Court Judge Comes Down Hard on the Company's Former Management

In No. 88 posted March 12, I reported that, on March 10, U.S. Bankruptcy Court Judge Russell F. Nelms granted the motion of the Securities and Exchange Commission (SEC) and ordered the U.S. Trustee to appoint a Chapter 11 Trustee for Life Partners Holdings, Inc. (LPHI). I also said I had not seen Judge Nelms' findings of fact and conclusions of law referred to in his Order. I now have the 32-page transcript of the 48-minute March 9 hearing at which Judge Nelms placed his findings of fact and conclusions of law on the record.

The Hearing

In attendance at the hearing, in person or by telephone, were attorneys representing the SEC, LPHI, certain LPHI shareholders, the U.S. Trustee, an ad hoc committee of investors in fractional interests, Advance Trust & Life Escrow Services, the Official Committee of Unsecured Creditors, and plaintiffs in the Arnold case. Also in attendance were an investor in fractional interests, two monitors, and the reporter.

Judge Nelms explained five principles that guided him in his ruling. He discussed the judgment handed down by Senior U.S. District Court Judge James R. Nowlin in the SEC lawsuit against LPHI, Brian D. Pardo, and R. Scott Peden, the jury findings in the case, and a series of issues in the case. Among those issues are the continued use (until February 2015) of life expectancy estimates by Dr. Cassidy, the ministerial fees imposed in 2014, the continued payment of dividends to LPHI shareholders in recent years (even in September 2014), the level of Pardo's compensation in recent years, the continued subservience of the LPHI board of directors to Pardo, and the most recent 8-K (material event) report and the accompanying letter and press release that created "panic" among investors in fractional interests. In summary, Judge Nelms said:

Finally, cause exists and the best interests of all parties would be served by appointing a trustee because someone needs to come into this case and calm the waters. In the last three months, a $40 million judgment has been entered against the Debtor, the Debtor has filed bankruptcy, Pardo and Peden have resigned, and the Debtor told creditors that a trustee would likely pool their interests. Naturally, investors and shareholders are concerned. Premiums are at risk. Someone needs to come into this case and assure everyone that they have a voice and that voice will be heard. And that message needs to come from someone who does not sound like they are contradicting themselves.

Finally, someone needs to come into this case and remind every party in interest of the role that this Court plays in this process. Nothing outside of the ordinary course of business is going to happen to this Debtor without this Court saying so. And this Court will not say so without according to all parties their rights under the law, including their rights of due process.

So, for these reasons, I will grant the SEC's motion to appoint a trustee.

General Observations

I came away from reading the transcript with the belief that Judge Nelms has provided a strong statement of the need for a Chapter 11 Trustee in the LPHI case. I also believe that the best way for readers to understand the matter is to read the transcript for themselves.

Therefore I am offering a complimentary 32-page PDF containing the transcript of the hearing. Send an e-mail to jmbelth@gmail.com and ask for the transcript of the Nelms March 9 hearing in the LPHI case.

===================================

Email: jmbelth@gmail.com

Blog: www.josephmbelth.com

No. 88: Life Partners—The Bankruptcy Court Judge Orders the Appointment of a Chapter 11 Trustee

On March 10, 2015, after a seven-week legal battle, U.S. Bankruptcy Court Judge Russell F. Nelms ordered the U.S. Trustee to appoint a Chapter 11 Trustee for Life Partners Holdings, Inc. (LPHI), subject to the court's approval. LPHI is the parent of Life Partners, Inc. (Waco, TX), which is an intermediary in the secondary market for life insurance policies. In ten posts (Nos. 75, 77, 78, 79, 80, 81, 82, 83, 84, and 86) I discussed developments at LPHI during the past few months.

The SEC Lawsuit

In January 2012, the Securities and Exchange Commission (SEC) filed a civil lawsuit against LPHI and its top officers alleging violations of federal securities laws. The case was assigned to U.S. Senior District Court Judge James R. Nowlin.

In January 2014, the case went to trial. The jury found in favor of the defendants on some allegations and against the defendants on some allegations. Judge Nowlin later threw out some and retained some of the jury findings against the defendants.

On December 2, 2014, Judge Nowlin handed down a Final Judgment Order. It was a death sentence for LPHI because the civil penalties imposed on the company were more than twice the company's total assets. Also, Brian D. Pardo, chairman and chief executive officer of LPHI, and R. Scott Peden, general counsel of LPHI, were ordered to pay civil penalties of $6.2 million and $2 million, respectively. (See SEC v. LPHI, U.S. District Court, Western District of Texas, No. 1:12-cv-33.)

Recent Developments

On December 30, LPHI began the process of appealing the Final Judgment Order. The appeal is in its early stages. (See SEC v. LPHI, U.S. Court of Appeals, Fifth Circuit, No. 14-51353.)

On January 16, 2015, Judge Nowlin handed down a Final Judgment confirming the terms of the December 2 Final Judgment Order. Pardo and Peden were ordered to pay their penalties within 30 days. They were not able to obtain surety bonds or post sufficient collateral to obtain a stay of the Final Judgment pending appeal. The penalties have not been paid. On February 19, the district court placed 20-year liens (subject to renewal) on all real property owned by Pardo and Peden.

On January 20, LPHI filed for protection under Chapter 11 of the federal bankruptcy law. The case was assigned to Judge Nelms. (See In re LPHI, U.S. Bankruptcy Court, Northern District of Texas, No. 15-40289.)

On January 23, the SEC filed a motion for appointment of a Chapter 11 Trustee. The U.S. Trustee and an official committee of unsecured creditors filed similar motions. LPHI opposed the motions, instead seeking the appointment of a chief restructuring officer.

In February and early March, Judge Nelms held a six-day hearing on the motions. On February 18, between two of the hearing days, LPHI made a desperate attempt to avoid appointment of a Chapter 11 Trustee. Pardo resigned from his executive and board positions, and became a consultant. Peden also resigned his executive positions. Colette Pieper, the chief financial officer and not a defendant in the case, was appointed the chief executive officer. At the same time, LPHI also took other actions.

The March 10 Order

The March 10 Order is brief. After referring to the January 23 SEC motion for appointment of a Chapter 11 Trustee, Judge Nelms said:

Finding that service and notice of the Motion and the hearing thereof was sufficient and appropriate under the particular circumstances, the Court having held an evidentiary hearing on this matter on February 9, 10, 12, 17, and 19, and March 3, 2015, and having rendered findings of fact and conclusions of law on the record on March 9, 2015, it is hereby:

ORDERED that the Motion is GRANTED, and it is further

ORDERED that the United States Trustee shall appoint a Chapter 11 Trustee, subject to the Court's approval.

I have not seen the March 9 "findings of fact and conclusions of law" referred to in the Order. When I do, I plan to report on them. Judge Nelms also issued a brief Order denying as "moot" the U.S. Trustee's motion for appointment of a Chapter 11 Trustee.

General Observations

When the U.S. Trustee makes its appointment, presumably we will learn the identity of the Chapter 11 Trustee. Hopefully we will also learn more than is found in the general language of the federal bankruptcy law about the duties of the Chapter 11 Trustee in this particular case.

===================================

Email: jmbelth@gmail.com

Blog: www.josephmbelth.com

No. 87: Life Insurance Replacement—Let's See the Numbers

In No. 69 posted September 30, 2014, I discussed the debate over the nature of sales illustrations that should be allowed in the promotion of indexed universal life (IUL) policies. I offered readers a 23-page "IUL package" of documents relating to the debate.

Recently a reader sent me a request for the IUL package. He made some comments that led to an exchange of e-mails. He said he is

genuinely helping owners of older, permanent policies change or restructure them away from the too often "dead money" of old policies into something current much more powerful. My default carrier is Penn Mutual and my nemesis is NML [Northwestern Mutual Life] because of their too successful tactics of being your best friend while picking your pocket.

When I sent him the IUL package, I said I was puzzled by his remarks. I asked what he meant by "something current much more powerful," his "default carrier is Penn Mutual," and NML "picking your pocket."

He responded: "Penn Mutual came highly recommended and my experience has been consistent with those recommendations." He also said:

I have found numerous people/clients with 15-20+ year old permanent policies who can get much greater death benefits and ultimately cash value (after recovering the initial reduction) by 1035ing the cash into a new policy. The old policies are consistently projected to perform much more poorly than a new one but the existing carrier virtually never offers to restructure it unless at risk of losing the policy. There's no reason an old policyholder should accept below market returns for life but typically don't know how to proceed. Mortgages are refinanced frequently but the lack of transparency and self interest make refinancings in insurance much less common.

Most old policies can be improved including NML. They can be greatly improved on but the tenacity (and mendacity) of the agents (through badmouthing other carriers, misrepresenting returns, etc.) frustrates me because they too often succeed in their interests but at the expense of the policyholders in whose interests they claim to work.

I responded that I am not from Missouri but still need to be shown. I asked him to consider a man who bought a $100,000 traditional whole life policy from NML ten years ago at age 35. I asked him to give me figures that show how the man could improve his financial position today by replacing the NML policy through a 1035 exchange with a new Penn Mutual policy. In response he said:

Can't take the time to do that right now, but the approach would be to compare an illustration of a new policy using cash value transferred, paying the same premium, same age etc. vs. in-force illustration of existing policy. It may not be perfect but the improvement is usually dramatic. Often when the policyholder requests the in-force illustration, the agent of the carrier offers to improve the policy.

I said I still need to see the numbers. He said he understood but can't take the time to do it now. He said he will try to do it sometime soon.

General Observations

I have often said some replacements are justified from a price standpoint, some are not justified, and some situations are a toss-up. I said serious consideration should be given to replacement only when it is clearly justified.

The unwarranted replacement situation that I discussed in No. 76 (posted December 15, 2014) admittedly was an extreme case. However, I have never seen a situation where the replacement of a seasoned cash-value life insurance policy issued by NML was justified from a price standpoint. That is what prompted me to ask my reader to show me the numbers. I hope that some day soon he will perform the analysis I requested.

===================================

Email: jmbelth@gmail.com

Blog: www.josephmbelth.com

No. 86: Life Partners—The NASDAQ Delisting Situation

In No. 84 posted February 25, I reviewed several significant recent developments since Life Partners Holdings, Inc. (LPHI) filed for bankruptcy protection under Chapter 11 of the U.S. bankruptcy law. Subsequent to the filing, LPHI received three notifications concerning the possible delisting of its shares, which are traded on NASDAQ.

The First Notice
On January 20, the day of the bankruptcy filing, NASDAQ notified LPHI that the bankruptcy filing placed the company in violation of NASDAQ listing rules, and that the company's shares therefore will be delisted. LPHI said it was planning to appeal the ruling and that, if the appeal is not successful, the shares may be eligible to be quoted on the Pink Sheets if a market maker applies to perform that function and is approved.

The Second Notice
On February 2, NASDAQ notified LPHI that the company did not meet the minimum bid price requirement in NASDAQ listing rules because the minimum bid price per share was below $1.00 for 30 consecutive days. The price lately has been fluctuating in a fairly narrow range around 20 cents per share. The company has until August 3, 2015, to regain compliance with the minimum bid price requirement, and may be eligible for additional time.

The Third Notice
On February 23, NASDAQ notified LPHI of three public interest concerns that constitute an additional basis for delisting the company's shares. The concerns, which relate to the Securities and Exchange Commission (SEC) lawsuit against LPHI and its top officers, are:

• The jury findings that LPHI's executive officers participated in filing false and misleading financial statements with the SEC.
• The history of egregious misconduct by LPHI's executive officers.
• LPHI's failure to make prompt disclosure of material information, particularly the approximately $46 million in sanctions imposed on LPHI and certain of its executive officers by the December 2 Final Judgment Order, until the January 14 filing of the 10-Q report for the fiscal quarter ended November 30, 2014.

LPHI has requested a hearing about the delisting proceedings, and the hearing is scheduled for March 19, 2015. There can be no assurance the company will be successful in the appeal.

General Observations
This is my first detailed experience with the NASDAQ delisting procedure. It strikes me as a lengthy process. Also, it is unclear what arguments LPHI can make at the March 19 hearing that would persuade NASDAQ to refrain from delisting the company's shares.

I am offering a complimentary six-page PDF consisting of the three LPHI announcements about the delisting proceedings. On the first of the three, I have indicated the date of the announcement and shown the correct date on which LPHI received the NASDAQ letter. Send an e-mail to jmbelth@gmail.com and ask for the LPHI delisting package.

===================================

Email: jmbelth@gmail.com

Blog: www.josephmbelth.com

No. 85: U.S. Justice Department Terrorism Charges against Three Brooklyn Men

On February 25, 2015, U.S. Attorney Loretta E. Lynch of the Eastern District of New York announced terrorism charges against three Brooklyn, New York men who allegedly attempted and conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL). On February 26, The New York Times and The Wall Street Journal carried front page articles about the charges.

The sealed complaint and affidavit in support of arrest warrants was filed on February 24 and unsealed the next day. U.S. Attorney Lynch's press release and the two newspaper articles do not include a link to the case. (See U.S.A. v. Juraboev et al., U.S. District Court, Eastern District of New York, No. 1:15-mj-172.)

I am offering readers a complimentary 25-page PDF consisting of U.S. Attorney Lynch's 2-page press release and the 23-page complaint. Send an e-mail to jmbelth@gmail.com and ask for the Juraboev package.

===================================

Email: jmbelth@gmail.com

Blog: www.josephmbelth.com

No. 84: Life Partners—Significant Recent Developments

Life Partners, Inc. (LPI), based in Waco, Texas, is an intermediary in the secondary market for life insurance policies. LPI's parent company is Life Partners Holdings, Inc. (LPHI). A recently formed subsidiary of LPHI is LPI Financial Services, Inc. (LPIFS).

The SEC Lawsuit

In January 2012, the Securities and Exchange Commission (SEC) filed a civil lawsuit against LPHI and its top officers alleging violations of federal securities laws. The case was assigned to U.S. Senior District Court Judge James R. Nowlin. (See SEC v. LPHI, U.S. District Court, Western District of Texas, No. 1:12-cv-33.)

In January 2014, the case went to trial. The jury found in favor of the defendants on some allegations and against the defendants on some allegations. Judge Nowlin later threw out some of the jury findings against the defendants.

The Death Sentence

On December 2, 2014, Judge Nowlin handed down a Final Judgment Order. It was a death sentence for LPHI because the civil penalties imposed on the company were more than twice the company's total assets. Also, Brian D. Pardo, chairman and chief executive officer of LPHI, and R. Scott Peden, general counsel of LPHI, were ordered to pay civil penalties of $6.2 million and $2 million, respectively.

On December 30, LPHI began the process of appealing the Final Judgment Order. The appeal is in its early stages. (See SEC v. LPHI, U.S. Court of Appeals, Fifth Circuit, No. 14-51353.)

On January 16, 2015, Judge Nowlin handed down a Final Judgment confirming the terms of the December 2 Final Judgment Order. The defendants were not able to obtain surety bonds for the full amounts of the penalties to obtain a stay of the Final Judgment pending appeal. The defendants also were not able to post assets for the full amounts of the penalties to obtain a stay. The district court denied the defendants' requests for permission to post small amounts of assets to obtain a stay.

The Bankruptcy Filing

On January 20, LPHI filed for protection under Chapter 11 of the federal bankruptcy law. The case was assigned to U.S. Bankruptcy Court Judge Russell F. Nelms. (See In re LPHI, U.S. Bankruptcy Court, Northern District of Texas, No. 15-40289.)

The Five Days of Hearings

On February 9, 10, 12, 17, and 19, Judge Nelms held a hearing on requests by the SEC, the U.S. Trustee, and the Official Committee of Unsecured Creditors to appoint a trustee, and on the request by LPHI to appoint a chief restructuring officer. He is considering the requests.

The LPHI Board Actions

On February 18, the LPHI board of directors held a two-hour meeting "to discuss with counsel what actions should be taken with regard to changes in corporate management." In attendance were Pardo, Peden, Colette Pieper (LPHI chief financial officer), the three other directors (Tad Ballantyne, Fred Dewald, and Harold Rafuse (Ballantyne and Dewald attended by telephone), and four LPHI attorneys. After "substantial discussion," the board by unanimous vote took these actions effective that day:

• Accepted Pardo's resignation as president, chief executive officer, and chairman of the board of LPHI and as an officer of all LPHI subsidiaries.
• Accepted Peden's resignation as secretary of LPHI and as an officer of all LPHI subsidiaries.
• Appointed Pieper acting president, chief executive officer, treasurer and secretary of LPHI and acting chief executive officer of all LPHI subsidiaries in addition to her continuing role as chief financial officer of LPHI.
• Appointed Mark Embry acting president and secretary of LPI and LPIFS in addition to his continuing role as chief operations officer.
• Engaged Pardo as independent consultant for marketing and strategic direction on terms to be negotiated.
• Authorized Peden to remain general counsel of LPI.
• For future life settlements, LPI will no longer utilize the life expectancy opinions of Dr. Donald Cassidy.
• LPHI subsidiaries will not make transfers out of the ordinary course of its business without further order of the bankruptcy court.
• LPHI subsidiaries will not pay indebtedness incurred prior to the January 20 bankruptcy filing without further order of the bankruptcy court.
• Reduced the size of the board of directors to three (Ballantyne, Dewald, Rafuse) with a chairman to be elected from the remaining members at a future board meeting.

The actions were reported in an 8-K (material event) report dated February 20 and filed with the SEC on February 23. The management changes were reflected on the LPHI website on February 23.

The Abstracts of Judgment

Judge Nowlin's January 16 Final Judgment required Pardo and Peden to pay to the SEC by February 16 the civil penalties imposed on them, but the penalties were not paid. On February 19, the district court clerk entered "Abstracts of Judgment" as of February 16 against Pardo and Peden and in favor of the SEC for the amounts of the penalties including post-judgment interest. Each abstract

creates a lien [for 20 years, subject to renewal] on all real property of the defendant(s) and has priority over all other liens and encumbrances which are perfected later in time.

Disclosure of Risks

On February 23, LPHI filed an 8-K report with the SEC. The text contains a lengthy discussion of risks relating to appointment of a trustee. According to LPHI, a potential trustee testified during the above mentioned five days of hearings. Because of that testimony, LPHI decided to communicate, to shareholders and purchasers of life settlements, the risks they face in the event a trustee is appointed. LPHI also discusses risks they face in the "potential liquidation" of LPHI. Attached to the 8-K are two exhibits dated February 23: a press release from Andrea Atwell in LPHI Shareholder Relations, and a "Ladies and Gentlemen" letter from Pieper containing a "Bankruptcy Case Update" addressed to "Clients of Life Partners, Inc."

The SEC Emergency Motion

On February 24, the SEC filed an emergency motion to supplement the record concerning the appointment of a trustee. The SEC is critical of LPHI's lack of advance notice to interested parties of the actions taken by the LPHI board on February 18 and the items circulated on February 23. The SEC is also critical of the LPHI reliance on the testimony of a witness at the February 17 hearing as justification for the items circulated on February 23. Attached to the SEC motion are the items circulated on February 23 and a brief excerpt from the hearing to illustrate the inappropriate LPHI interpretation of what happened at the hearing.

General Observations

If Judge Nelms appoints a trustee, the trustee would operate LPHI during the bankruptcy proceedings. I think the management changes and other actions taken by the LPHI board of directors on February 18 were an effort to undercut the SEC argument that current management cannot be trusted to operate the company properly during bankruptcy proceedings. I think the effort will not succeed. Further, in the absence of a trustee, I think Pardo would continue operating the company despite his new designation as a consultant.

As for the February 23 letter to investors in life settlements, I think its purpose was to frighten investors into believing that they would lose everything if a trustee is appointed. I have been contacted by several investors who expressed concern, and some apparently even thought the government was going to confiscate their property. I think it is important to recognize that, if a trustee is appointed, the objective of the trustee, under the supervision of the bankruptcy court, would be to do everything possible to minimize investor losses.

I am offering a complimentary 34-page PDF consisting of six items: (1) the 7-page LPHI filing that includes the minutes of the February 18 meeting of the LPHI board; (2) the 1-page abstract of judgment relating to Pardo; (3) the 1-page abstract of judgment relating to Peden; (4) the 10-page LPHI February 23 8-K report that includes the discussion of the claimed risks associated with the appointment of a trustee, the press release, and the letter to LPI clients; (5) the 9-page SEC motion filed February 24; and (6) the 6-page excerpt from the transcript of the February 17 hearing filed as an exhibit to the SEC motion. Send an e-mail to jmbelth@gmail.com and ask for the SEC-LPHI February 25 package.

===================================

Email: jmbelth@gmail.com

Blog: www.josephmbelth.com

No. 83: Life Partners—A Setback for Pardo and Peden

U.S. Senior District Court Judge James R. Nowlin issued a Final Judgment Order on December 2 in a lawsuit filed by the Securities and Exchange Commission (SEC) against Life Partners Holdings, Inc. (LPHI), which is in the secondary market for life insurance. The Final Judgment Order was a death sentence for LPHI, because the penalties imposed on the company were twice its total assets. Also, Brian D. Pardo, chairman and chief executive officer, and R. Scott Peden, general counsel, were ordered to pay penalties of $6.2 million and $2 million, respectively.

On January 16, Judge Nowlin issued a Final Judgment reiterating the terms of the December 2 Final Judgment Order. On January 20, in federal bankruptcy court, LPHI filed for protection under Chapter 11 of the federal bankruptcy law. I wrote about these and related developments in seven items beginning with No. 75 posted December 10. Here I discuss two new developments: a setback for Pardo and Peden in the district court, and the appointment of an unsecured creditors' committee in the bankruptcy court. (See SEC v. LPHI, U.S. District Court, Western District of Texas, No. 1:12-cv-33, and In re LPHI, U.S. Bankruptcy Court, Northern District of Texas, No. 15-40289.)

The Magistrate Judge's Order

Pardo and Peden are preparing an appeal of Judge Nowlin's January 16 Final Judgment to the U.S. Court of Appeals for the Fifth Circuit. Normally they would have to post bonds in the full amount of the penalties to obtain a stay pending appeal. They filed separate motions to allow posting of much less security to obtain a stay. I did not write earlier about the motions because they were not available. Presumably they were sealed (and are still sealed) because they contain personal financial information.

On February 2, U.S. Magistrate Judge Andrew W. Austin of the district court issued an Order. He denied both motions.

According to the Order, Pardo said he could not post a $6 million bond because it exceeds "his alleged net worth of $1,585,885." He proposed alternate security of $50,000 cash and a pledge of 100 percent of his stock in LPHI. He submitted a "conclusory declaration" about his financial condition and no "verified financial or accounting statements." He "did not bother to appear" at the January 21 hearing to provide testimony or be cross-examined. The Order mentions his 2014 salary of more than $600,000, his real estate of more than $1 million, his four airplanes (including two luxury jets), and his automobiles worth $369,000 (including a Mercedes that retails at more than $220,000). He did not mention any interest in the off-shore family trust that received millions in dividends from LPHI in recent years. Thus he "has offered to post as security less than one-quarter of the value of one of his cars."

Peden said his net worth is $377,607. He proposed alternate security of $10,000 cash and a pledge of 100 percent of his LPHI stock. He "does not appear to own as many gaudy luxury items as Pardo, and thus his request is not as audacious as Pardo's." However, he submitted an "unaudited conclusory declaration" about his financial condition and no "verified financial or accounting statements." He was not present at the January 21 hearing to present testimony.

The Creditors' Committee

On January 30, in the bankruptcy court, U.S. Trustee William T. Neary filed a notice about the appointment of a three-person "Official Unsecured Creditors' Committee" of LPHI. The names, addresses, and telephone numbers of the committee members are:

Bert Scalzo
2917 Elmridge Drive
Flower Mound, TX 75022
(469) 693-3300

Glenda Pirie
128 PR 4831
Newark, TX 76071
(817) 489-2334

Adriana Atchley
235 Zachary Walk
Murphy, TX 75094
(972) 423-7146

On January 30, the clerk of the bankruptcy court filed a notice about the case. The notice indicates that a meeting of creditors is set for March 20 at 9:30 a.m. in the Fritz G. Lanham Federal Building, 819 Taylor Street, Room 7A24, Fort Worth, TX 76102. The notice also indicates that the deadline to file a proof of claim is June 18. The bankruptcy court clerk's office address and telephone number are 501 West Tenth Street, Fort Worth, TX 76102, (817) 333-6000.

General Observations

I am not certain what happens now. Judge Nowlin's January 16 Judgment requires Pardo and Peden to pay the penalties within 30 days of the Judgment. I think that means the deadline is Monday, February 16, because February 15 falls on Sunday.

I am offering a complimentary 11-page PDF consisting of three documents: (1) Magistrate Judge Austin's 5-page February 2 Order denying the motions filed by Pardo and Peden; (2) U.S. Trustee Neary's 3-page notice about the appointment of the official unsecured creditors' committee; and (3) the bankruptcy court clerk's 3-page notice about the case. Send an e-mail to jmbelth@gmail.com and ask for the SEC-LPHI February 4 package.

===================================

Email: jmbelth@gmail.com

Blog: www.josephmbelth.com