AICI Capital Trust 9% Pfd (fka AICPQ)

[Enterprising Investor]

I would to congratulate everyone receiving a distribution.

The journey has been long, too long.

If you stumbled upon one of my early posts and then decided to invest in this crazy special situation, thank you for believing in the story.

[jip53]

yes! ,thanks to EI

[AKAPAK]

Thanks again for all the updates.

[AKAPAK]

Good News Friday !!! $$ In the books today.

[jip53]

got the $

[AKAPAK]

Waiting with open arms :)

[goldcanyon341]

Trustee shall commence distribution within fourteen (14) days of the date of this Order.
Order date was 7/29/2022.
Please post to the board when distribution reaches your account to inform other investors.

[goldcanyon341]

Order on Chapter 7 Trustee Final Report (Related Doc # 714 ). Approving for Richard Myers, fees awarded: $203102.92, expenses awarded: $5061.31. The chapter 7 Trustee's Final Report and Proposed Distribution is APPROVED. The Trustee's fees, expenses, and bond premium as shown therein are approved and the Trustee shall commence distribution within fourteen (14) days of the date of this Order. ORDERED by Judge Thomas L. Saladino (Text only order) (ADIclerk) (Entered: 07/29/2022)

[Enterprising Investor]

Distribution should occur in early August.

[Enterprising Investor]

Notice of Trustee's Final Report and Application for Compensation (7/5/22)

Objections due by 7/28/22.

Source: PACER [Docket 715]

[AKAPAK]

Thanks for providing all the updates.

[Possum336]

Thanks for all the great info.

[Enterprising Investor]

Chapter 7 Trustee's Final Report, Application for Compensation and Application(s) for Compensation of Professionals filed on behalf of Trustee. The United States Trustee has reviewed the Chapter 7 Trustee's Final Report. Filed by US Trustee for Richard D. Myers, Trustee Chapter 7, Fee: $203,102.92, Expenses: $5,061.31. (06/30/22)

Gross receipts: $8,725,668.43.

Deutsche Bank Trust Company Americas is proposed to receive $5,782,847.56. The distribution to AICPQ holders should be around $1.52 per share.

The earlier interim payment to DBTCA was $1,729,616.30.

The Trustee received $285,020.05 in compensation during the case with $203,102.92 scheduled to be paid.

Source: PACER [Docket 714]

[Enterprising Investor]

Trustee may now expedite final distributions to creditors!

[Enterprising Investor]

Order Approving Application For Compensation for Fees & Expenses for Frankel Zacharia, LLC, Accountant, Filed by Accountant Frankel Zacharia, LLC. The pleading was filed, served and noticed pursuant to local rules. No timely resistance/objection was filed. The motion is granted. Fees are granted for Frankel Zacharia, LLC, in the amount of $1495.62, and expenses awarded in the amount of $0.00. Movant is responsible for giving notice to parties in interest as required by rule or statute. ORDERED by Judge Thomas L. Saladio (6/28/22)

Source: PACER [Docket 713]

[Enterprising Investor]

Order Approving Application For Compensation for Deloitte Tax LLP, Accountant, Filed by Accountant Deloitte Tax LLP. The pleading was filed, served and noticed pursuant to local rules. No timely resistance/objection was filed. The motion is granted. Fees are approved for Deloitte Tax LLP in the amount of $23000.00, and expenses awarded in the amount of $1078.75. Movant is responsible for giving notice to parties in interest as required by rule or statute. ORDERED by Judge Thomas L. Saladino (6/28/22)

Source: PACER [Docket 712]

[Enterprising Investor]

Final Application for Fees & Expenses for Frankel Zacharia, LLC, Accountant, Fee: $1495.62, Expenses: $0.00. Filed by Accountant Frankel Zacharia, LLC (6/17/22)

Objections due by 6/27/22

Source: PACER [Docket 708]

[Enterprising Investor]

Final Application for Fees & Expenses for Deloitte Tax LLP, Accountant, Fee: $23,000, Expenses: $1078.75. Filed by Accountant Deloitte Tax LLP (6/17/2022)

Deloitte Tax prepared 2021 federal and state income tax returns of Acceptance Insurance Companies, Inc. which was billed on a fixed-fee basis.

Objections due by 6/27/22

Source: PACER [Docket 706]

[Enterprising Investor]

Motion to Shorten Time and Certificate of Service Filed by Trustee Richard D. Myers (6/16/22)

Motions for Shortened Notice

COMES NOW Richard D. Myers, duly qualified Chapter 7 Trustee for Acceptance Insurance Companies, Inc., Debtor in the above-captioned Chapter 7 case and for his Motion for Shortened Notice (“Motion”) states and alleges as follows:

1. That Debtor caused its initial Petition under Chapter 11 of the Bankruptcy Code to be filed with this Court on January 7, 2005, which case was converted by Order of this Court to a case under Chapter 7 on September 7, 2010.

2. That Trustee’s accountants, Frankel Zacharia, LLC, and Deloitte Tax LLP will be filing their final fee applications subsequent to the filing of this Motion to Shorten Notice, and that no further fee applications are anticipated to be filed in this case.

3. Trustee is filing this Motion with the knowledge and consent of all parties in interest, including the United States Trustee’s Office.

4. That it would be in the best interests of Debtor and other parties in interest that this Court enter an Order shortening notice of Trustee’s accountants’ fee applications to ten (10) days or less so that Trustee may expedite final distributions to creditors. The amounts of the requested administrative expenses reflected by the two fee applications is a minute fraction of the funds on hand, and prompt distribution of the funds will make a material difference to the distributes, and the process of using a shortened notice was suggested by the United States Trustee.

WHEREFORE, Trustee herewith respectfully requests that this Court make and enter an order providing that notice period for Trustee’s accountants be shortened to ten (10) days or less from the date of submission of such fee applications, and for such other and further relief as the Court may deem just or fair.

Dated this 16th day of June, 2022.
RICHARD D. MYERS, Chapter 7 Trustee

Source: PACER [Docket 704]

[Enterprising Investor]

No filings in May.

[Enterprising Investor]

Oak Point Partners

https://oakpointpartners.com/portfolio

[Enterprising Investor]

[Enterprising Investor]

Distribution may occur in late May.

[Enterprising Investor]

Order Approving Fourth and Final Application by Special Counsel for the Trustee for Allowance of Compensation and Reimbursement of Expenses Filed by James E. Bird (Related Doc # 695). The pleading was filed, served and noticed pursuant to local rules. No timely resistance/objection was filed. The motion is approved. Approving for James E. Bird, fees awarded: $64109.00, expenses awarded: $255.94 Movant is responsible for giving notice to parties in interest as required by rule or statute. ORDERED by Judge Thomas L. Saladino (12/30/21)

Source: PACER [Docket 700]

[Enterprising Investor]

Order Granting Supplemental/Final Application For Compensation for McGill Gotsdiner Workman & Lepp PC LLO, Trustee's Attorney Filed by Attorney McGill Gotsdiner Workman & Lepp PC LLO. The pleading was filed, served and noticed pursuant to local rules. No timely resistance/objection was filed. The motion is granted and fees are awarded to McGill Gotsdiner Workman & Lepp PC LLO, in the amount of $13533.00 and expenses awarded in the amount of $0.00. Movant is responsible for giving notice to parties in interest as required by rule or statute. ORDERED by Judge Thomas L. Saladino (1/06/22)

Source: PACER [Docket 702]

[Enterprising Investor]

Comment of the United States Trustee Pursuant to 28 U.S.C. § 586(a)(3)(A). The Office of U.S. Trustee has reviewed the Application and reports to the Court that it has no objection to the approval of the fees and expenses requested. The U.S. Trustee reserves the right to comment on or object to any future interim or final fee applications (12/20/21)

Source: PACER [Docket 699]

[Enterprising Investor]

Supplemental Application for Fees & Expenses for McGill Gotsdiner Workman & Lepp PC LLO, Trustee's Attorney, Fee: $13,533, Expenses: $0 (12/15/21)

Covers services from 8/08/19 through 1/14/21.

Objections due by 1/5/2022.

Source: PACER [Docket 697]

[Enterprising Investor]

Final Application for Fees & Expenses for the Period 8/1/2021 Through 12/3/2021 for Polsinelli PC, Special Counsel, Fee: $64109.00, Expenses: $255.94 (12/08/21)

Objections due by 12/29/2021.

The effective date of the sale was 11/30/21.

The Special Counsel recovered approximately $8,501,547.

Source: PACER [Docket 695]

[Enterprising Investor]

Trustee's Report of Sale to Darag North America and Certificate of Service (12/08/2021)

Trustee Richard D. Myers reports the sale of Acceptance Insurance Companies, Inc. to Darag North America in the amount of $3,436,364. The amount of $1,000 was allocated for the common stock of American Insurance Company and $3,435,364 for the payment toward the principal amount of the Surplus Note of Acceptance Insurance Company due to Debtor. Included in the wire transfer was the additional sum of $245,683, representing transfer to the bankruptcy estate of payment of Debtor's right to payment of its claim in the Reliance Insurance liquidation proceedings. The total wire was $3,682,047.

Source: PACER [Docket 694]

[Enterprising Investor]

Trustee's Report of Sale of Debtor's Corporate Remnants and Certificate of Service (10/12/21)

No other bidders surfaced.

The purchase price of $12,500 was received and deposited into the estate's bank account on 10/08/21.

Source: PACER [Docket 689]

[Enterprising Investor]

Order Granting Motion To Sell Free & Clear Under Section 363(f) Filed by Trustee Richard D. Myers (10/04/21)

The pleading was filed, served and noticed pursuant to local rules. No timely resistance/objection was filed. The motion is granted.

Source: PACER [Docket 687]

[goldcanyon341]

The sale of the Remnant Assets to Oak Point Partners is for $12,500

[AKAPAK]

Thanks for all the updates. Looks like the sunset is near.

[Enterprising Investor]

Updates from the Fee and Expense Filing

The closing is expected later this month, as closing was conditioned upon:

(a) the approval of the Form A filing by the successful bidder with the Nebraska Department of Insurance, and (b) a final and non-appealable Order from the State Court, dismissing the Company, from its rehabilitation proceeding. The closing has taken longer than expected, in large part because DARAG North American Holding Company wants to merge the Company into another Texas insurance Company it is purchasing. This requires the approval of the Form A filing with the Texas Department of Insurance, which has made several requests for additional information related to the Texas Form A filing.

Under the Stock Purchase Agreement, the purchase price is adjusted based on the Company’s most recent Quarterly Statement filed with the Nebraska Department of Insurance. However, Applicant negotiated with DARAG North America Holding Company that the Company’s Quarterly Statement for the First Quarter of 2021 be used for purposes of calculating the purchase price adjustments, instead of the most current Quarterly Statement for the Second Quarter of 2021, which will result in significant additional purchase price proceeds to the Estate.

The efforts of the Trustee and Special Counsel also have led to very sizable distributions of $2,000,000 on July 9, 2019, $1,279,000 on June 1, 2020, and $1,328,000 on November 23, 2021 (s/b 2020), from the Company on its Surplus Note obligation to the Debtor’s estate, including as the result of the IAT Settlement and release of trust funds from Enstar.

Additionally, the Debtor anticipates significant additional value to the estate from distributions paid on Acceptance’s Proof of Claim of approximately $6,382,768 in the Reliance Insurance Company (In Liquidation) proceedings. The Reliance Insurance Company liquidator currently has estimated a 4.8% recovery on claims, which if true would equate to an approximate $300,000 recovery to the Estate. During this Third Application period, the Trustee and Applicant incurred substantial time and expense in an attempt to sell the Reliance Insurance Proof of Claims to Prime Shares to more quickly monetize this asset and potentially accelerate the closing of the Estate. Due to last minute issues and circumstances with the Reliance liquidation estate, Prime Shares withdrew their fully negotiated and documented offer to buy AIC’s Proof of Claims in the Reliance Insurance Company liquidation case after substantial efforts to sell the claim had been expended by the Estate.

[Enterprising Investor]

Third Application for Fees & Expenses for Polsinelli PC, Special Counsel, Fee: $245329.00, Expenses: $315.70. Filed by James E. Bird (9/10/21)

Objections due by 10/1/2021.

Source: PACER [Docket 680]

[Enterprising Investor]

Motion to Sell Property Free and Clear of Liens under 11 U.S.C. Section 363(f). Filed by Trustee Richard D. Myers 9013 (9/10/21)

The Purchaser is Oak Point Partners, LLC subject to a bidding process.

The Trustee has determined that there might exist property of the Debtor’s Estate, consisting of known or unknown assets or claims, which have not been previously sold, assigned, or transferred (collectively, “Remnant Assets”). Potential unknown assets might include unscheduled refunds, overpayments, deposits, judgments, claims, or other payment rights that would accrue in the future.

The Trustee has conducted due diligence and remains unaware of the existence of any Remnant Assets, and certainly none that could return value to the Estate greater than the Purchase Price. Accordingly, the Trustee has determined that the cost of pursuing the Remnant Assets will likely exceed the benefit that the Estate would possibly receive on account of the Remnant Assets.

Objections due by 10/1/2021.

Source: PACER [Docket 676]

[goldcanyon341]

Reply from Trustee, Rick Meyers, to inquiry about status of Acceptance Insurance.

"Closing on the sale of the subsidiary previously approved by bk court awaits approval of Texas state insurance commission (buyer plans to merge the sub into a Texas entity). I know of no obstacles and hope we close this month or so, then we do final tax return and sale of remnants."

[Enterprising Investor]

Filing did not mention any progress on exiting rehabilitation.

[Enterprising Investor]

AIC Q2 2021 Financial Results (8/03/21)

Underwriting Loss was $287,057.

Investment Income was $27,831.

Net Loss was $259,226.

All figures YTD.

AIC had $9.4 million in assets at 6/30/21. Non-Admitted assets totaled $3.2 million, making Net Admitted Assets $6.2 million.

Surplus Notes remained at $15.393 million.

Surplus was $3.05 million, down from $3.28 million at 3/31/21.

AIC also had more than $85.5 million of unused operating loss carryforwards at 6/30/21.

[Enterprising Investor]

AIC Q1 2021 Financial Results (5/17/21)

Underwriting Loss was $39,410.

Investment Income was $19,601.

Net Loss was $19,809.

All figures YTD.

AIC had $9.7 million in assets at 3/31/21. Non-Admitted assets totaled $3.2 million, making Net Admitted Assets $6.6 million.

Surplus Notes remained at $15.393 million.

Surplus was $3.28 million, unchanged from 12/31/20.

AIC also had more than $85.2 million of unused operating loss carryforwards at 3/31/21.

[goldcanyon341]

Enterprising Investor

Could you contact me at [e-mail].
Will explain after contact.

[Possum336]

Thanks

[Enterprising Investor]

No.

The case is waiting for a hearing which will lead to AIC being released from rehabilitation. Once that occurs, the sale can be completed.

[Possum336]

Does anyone have a hypothetical time frame for distribution of the proceeds from asset sales in this case?

[Enterprising Investor]

Trustee Myers is also a due a fee.

[goldcanyon341]

Estate expenses will be a factor.

Extending the math from what we know.

$1,279,000 6/02/20 income
$1,327,539 11/24/20 income
$4,000,000 1/12/20 DARAG Sale
----------
$6,606,539 Total

-231,837.75 attorneys paid thru June 2020
-2,078.27 accounting docket 664
-14,200.00 Deloitte tax opinion on NOL's docket 666
----------
$6,358,422.98 Net (so far)

3,795,000 trust preferred shares

Wisdom Of Jesse Livermore

“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!

[vpagano]

After nearly a decade, I would not have expected this to be my first potential 50-bagger (all-in if those fund are distributed). If only I wasn't a college kid with no money back then....many many thanks EI for the info.

[goldcanyon341]

The Court Hearing has concluded.

Sale at $4,000,000 subject to the the two approvals described by Enterprising Investor:
" The Sale Closing is conditioned upon: (a) the approval of the Form A filed by the Successful Bidder with the Nebraska Department of Insurance and (b) a final and non-appealable Order from the State Court, dismissing the Estate's subsidiary, Acceptance Insurance Company from its rehabilitation proceedings."

The most interesting part of the court hearing occurred when Rick Myers said the Nebraska Insurance Commissioner's Office had indicated the company was ready to come out of rehabilitation on its own because Acceptance Insurance management had done a good job of rehabilitation.

[goldcanyon341]

Court Hearing to accept the Stalking Horse offer of $4 million is scheduled for 1:00PM today 1/12/2021

[AKAPAK]

Let me echo the THANKS for all the info presented