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White Eagle Asset parent provides details of global plan settlement
By Caroline Salls
Pittsburgh, June 24 – White Eagle Asset Portfolio LP parent Emergent Capital, Inc. announced the details of a settlement on which White Eagle’s confirmed plan of reorganization was based in an 8-K filed Monday with the Securities and Exchange Commission.
As previously reported, the plan was confirmed by the U.S. Bankruptcy Court for the District of Delaware and took effect on June 19.
The parties to the settlement agreement include White Eagle, Imperial Finance and Trading, LLC, Lamington Road Bermuda, Ltd., OLIPP IV, LLC and Markley Asset Portfolio LLC.
The global settlement resolved a lawsuit filed by White Eagle and Lamington against LNV Corp., Silver Point Capital LP and GWG Holdings, Inc.
White Eagle said the settlement calls for the debtors to arrange financing, the proceeds of which will be used to pay off the company’s pre-bankruptcy credit facility at 102%, if paid by Sept. 17, or 104%, if paid by Dec. 30, 2019, of the outstanding principal amount plus interest, at which point the credit facility will be terminated.
If the credit facility is not paid in full by Sept. 17, a liquidation trustee appointed by the bankruptcy court may begin selling life insurance policies out of White Eagle’s portfolio, with the proceeds of any those sales to be used to pay down the credit facility.
If the credit facility is not paid in full by Dec. 30, 2019, the lender may take possession of remaining collateral pledged in support of the facility.
White Eagle is a wholly owned indirect subsidiary of Emergent Capital, a Boca Raton, Fla., specialty finance company that invests in life settlements. White Eagle filed bankruptcy on Dec. 13, 2018. The Chapter 11 case is being administered under case number 18-12808.
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