Colorado Bankers (CB Life)...

[Allen Trent]

Your state guarantee package of options could include buyers for your assets

No, I don't mean Guaranty associations. They don't have any assets at all. They will send a bill to other insurance companies in their state that had nothing to do with it to fund the guaranty payments to CBL customers

I was talking about the liquidation order to CBL to sell all their assets, pay creditors, etc. CBL could own buildings, companies, bonds, mortgages, etc.

For comparison. Say you were a person that won a lawsuit against a business & a judge ordered then to liquidate their assets. They would have to put everything up for sake. All those sales could take months or longer to liquidate assets, especially the assets that have a creditor on the assets as collateral on loan

 

[ccwpc]

Can anyone speculate on what the process will be for the excess policyholders? Will there be a class action lawsuit filed on our behalf or what other possible scenarios will happen?

 

[Dan T]

information in the letter

 

[rats0001]

$900,000,000 of lindberg affiliated investments probably worthless or already sold.

 

[Allen Trent]

Can anyone speculate on what the process will be for the excess policyholders? Will there be a class action lawsuit filed on our behalf or what other possible scenarios will happen?

I would be surprised. I say that because who would the class action lawsuit be against? CBL will already be broke & liquidated.

Class Action likely wouldnt go against all the banks or agents that sold CBL.

Maybe if 1 bank mentioned many times in this thread had lots of customers come forward, they could attempt a lawsuit against the bank. But not sure there will be a lawyer that thinks they can both prove, win & recover on those. lawyer bills could add up quick trying to sue a large bank if lawyer didnt take it on contingency

 

[ccwpc]

I would be surprised. I say that because who would the class action lawsuit be against? CBL will already be broke & liquidated.

Class Action likely wouldnt go against all the banks or agents that sold CBL.

Maybe if 1 bank mentioned many times in this thread had lots of customers come forward, they could attempt a lawsuit against the bank. But not sure there will be a lawyer that thinks they can both prove, win & recover on those. lawyer bills could add up quick trying to sue a large bank if lawyer didnt take it on contingency

So what processes do "claims against the insolvency estate" involve?

 

[Allen Trent]

So what processes do "claims against the insolvency estate" involve?

I think you get in line as a "creditor"

But secured creditors would be in front of unsecured creditors. So, any banks involved with that held those assets as collateral on loans would be at the front of the line (after federal & state goverments that are owed money). Lawyers & the 3rd party vendor handling everything are also likely ahead of others.

But small businesses owed for services rendered or consumers with excess policy values are likely at the end of the line.

You should be able to look up order of priority in a corporate liquidation to see where customers fall compared to the government, employees & secured creditors

 

[rats0001]

Best chance of any recovery is probably the insurance companies lawsuit against lindberg for $1 billion. lindberg value of global growth etc is thought be worth about $3 billion based on the piece that was supposed to be sold to Quadro Acquisition that fell through a couple of months ago.

From the 1/18/2024 sec filing
Group of Greg Lindberg’s Companies to Merge with Quadro Acquisition One Corp. in $3 Billion Deal

Problems come in because lindberg seems to be personally liable in all the cases he is losing lately, so all these judgements might be more then $3 billion, although I don't think any $$ have been actually paid.

 

[Allen Trent]

Best chance of any recovery is probably the insurance companies lawsuit against lindberg for $1 billion. lindberg value of global growth etc is thought be worth about $3 billion based on the piece that was supposed to be sold to Quadro Acquisition that fell through a couple of months ago.

From the 1/18/2024 sec filing
Group of Greg Lindberg’s Companies to Merge with Quadro Acquisition One Corp. in $3 Billion Deal

Problems come in because lindberg seems to be personally liable in all the cases he is losing lately, so all these judgements might be more then $3 billion, although I don't think any $$ have been actually paid.

but I dont think that reinsurance company suing him would have anything to do with paying CBL. they are suing to recover what they lost in their dealings with his company(ies)

 

[rats0001]

From the rehabilitator monthly report:

Civil Litigation Update

The Special Deputy Receivers filed on June 23, 2023, an action in The United States District Court for the Eastern District of North Carolina, Western Division, captioned Southland National Insurance Corporation, in Liquidation, et al v. Greg E. Lindberg, et al, Case No. 5:23-CV-340 (E.D.N.C.), seeking damages in an amount over $1,000,000,000, plus punitive damages, on behalf of Southland National Insurance Corporation in Liquidation, Colorado Bankers Life Insurance Company in Rehabilitation, Bankers Life Insurance Company in Rehabilitation, and their policyholders and creditors. Through this lawsuit, the North Carolina insurance companies seek substantial money damages from those who wrongfully used policyholder money for their own gain.