Life insurance buyer Life Settlements Absolute Return files for bankruptcy as clients live too long.
Life Settlements Absolute Return (LSAR) filed for chapter 11 in Delaware as its cash accounts dropped to under $10m. LSAR, formed in 2007, made a business of purchasing life insurance policies from wealthy individuals, but the company has run low on cash as insured individuals outlive their actuarial life expectancies. LSAR fell short in its attempts to sell the policies on the open market, seeing 80% losses on policies sold. As of the filing, LSAR had total debt of roughly $244m with listed assets between $10m and $50m.
Declaration of Robert Davey
50-year-old Washington, D.C., news company Current Newspapers said it intends to continue business as usual while it aims to restructure as much debt as possible in the U.S. Bankruptcy Court for the District of Columbia. Current Newspapers, which said it had less than $50,000 in assets, came under fire last year when a vendor sued for $180,000 in unpaid printing bills, and the company’s situation only worsened when the managing editor of over 25 years resigned in December. Current Newspapers listed total debts of about $1.2m in its filing.