Actually, the net asset value (you can call it net worth, or book value if you wish) excluded the $85 million (not $87 million) of money due from Trainwreck. If you go back to the 10-Q filed for June 30, 2003, you will see that LaSalle put a 100% valuation allowance against the $75 million loan asset and the $10 million advance asset.
The $38 million (not $35 million) net asset value referred to in the 12/07 Form 8-K is, as stated, before any expenses and COSTS (my emphasis) of the Scheme Termination, nor does it include expected expenses for the final windup. Subsequently, a "dividend" of $6.5 million was paid to the liquidators to meet these expenses, bringing net asset value down to about $32 million.
On January 22, 2008, the last of LaSalle's reinsurance liabilities were paid out, paving the way for the distribution to the Series A holders -- that amounts to less than 40% of what they are owed (including accrued dividends).
What of the $67 million owed by LaSalle to the Trainwreck (but not payable until the Series A holders receive their full payment, or at least must be re-routed to LaSalle for payment to the Series A holders)?
It would seem probable that this payable would have been offset by the valuation allowance placed against the $85 million asset -- after all, "...if we must write down the receivable from you, then we will certainly write off what we owe you!" But this is difficult to ascertain as the LaSalle and Trainwreck financial statements through 6/30/03 are presented on a consolidated basis including the Oaks activity and the intercompany transactions are all wiped out. The fly in the ointment is that the $67 million was/is owed to TGL and TAC, and since TAC is no longer affiliated with Trainwreck, owned instead and controlled by the State of Connecticut, this liability will not go away.
The contingent assets are profit-sharing arrangements contingent upon the runoff of the Oaks being more successful than contemplated in the sale agreement. As the amount of business remaining on the books was relatively small, it is highly unlikely that another $50 million will be realized -- currently the market is guessing about $660,000 (based on the $0.22/shr price of LSRAF).
AI
