Case rfn11 Doc 241 Filed 03/25/15 Entered 03/25/15 17:42:34 Page 1 of 4

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1 Case rfn11 Doc 241 Filed 03/25/15 Entered 03/25/15 17:42:34 Page 1 of 4 David M. Bennett Texas Bar No Richard Roper Texas Bar No Katharine Clark Texas Bar No THOMPSON & KNIGHT LLP 1722 Routh Street, Suite 1500 Dallas, Texas (214) (214) (Facsimile) David.Bennett@tklaw.com Richard.Roper@tklaw.com Katie.Clark@tklaw.com (PROPOSED) ATTORNEYS FOR THE CHAPTER 11 TRUSTEE, H. THOMAS MORAN II IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS FORT WORTH DIVISION IN RE: CASE NO RFN-11 LIFE PARTNERS HOLDINGS, INC., CHAPTER 11 DEBTOR TRUSTEE'S MOTION FOR SETTING AND REQUEST FOR EMERGENCY HEARING TO CONSIDER THE TRUSTEE S EMERGENCY MOTION TO AMEND THE GOVERNING DOCUMENTS AND TO FILE VOLUNTARY CHAPTER 11 PETITIONS FOR DEBTOR S SUBSIDIARIES TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE: The Chapter 11 Trustee, H. Thomas Moran II, (the Trustee ) for the bankruptcy estate of Life Partners Holdings, Inc. ( LPHI or the Debtor ) hereby respectfully moves (by this Motion ) the Court for its Order Authorizing the Trustee to Amend the Governing Documents and to File Voluntary Chapter 11 Petitions for Debtor s Subsidiaries (the Motion to Amend and File ). 1. Under the Trustee s Motion to Amend and File, the Trustee requests an order granting the Trustee the authority to cause the Debtor, Life Partners, Inc. ( LPI ), and LPI Financial Services, Inc. ( LPIFS ), as applicable, to (i) remove the current members of the boards of directors of LPI and LPIFS, (ii) amend the governing documents of LPI and LPIFS, TRUSTEE'S MOTION FOR SETTING AND REQUEST FOR EMERGENCY HEARING PAGE 1

2 Case rfn11 Doc 241 Filed 03/25/15 Entered 03/25/15 17:42:34 Page 2 of 4 (iii) elect the Trustee as the sole director of each of LPI and LPIFS, and (iv) take such actions as are necessary to cause LPI and LPIFS to file voluntary chapter 11 bankruptcy petitions, seeking joint administration with the estate of the Debtor. The Trustee requests such relief to ensure the ongoing viability of the Debtor, as well as to facilitate the discharge of the Trustee s fiduciary responsibilities to all stakeholders. Filing voluntary chapter 11 petitions for LPI and LPIFS is especially critical because (i) given the integrated nature of the enterprise, LPI s and LPIFS s businesses will be an integral part of the reorganization of the Debtor, (ii) such bankruptcy cases will facilitate the Trustee s control over LPI and LPIFS in order to implement appropriate changes in management, increase operational efficiencies, and reduce overhead, and (iii) the expense of myriad ongoing litigation is a drain on the business enterprise, which will be alleviated by the imposition of the automatic stay for the benefit of LPI and LPIFS. 2. An emergency hearing is necessary and appropriate because the Trustee cannot take the above critical actions without such control and power. 3. Accordingly, the Trustee must retain power and control over LPI and LPIFS promptly in order to properly reorganize or liquidate the Debtor and maximize the debtors operational efficiencies for the benefit of all stakeholders. 4. Notice of an emergency hearing will be provided: (a) via electronic mail on: (i) the United States Trustee; (ii) the Official Unsecured Creditors Committee; (iii) the Securities and Exchange Commission; and (iv) to all parties receiving notice via the Court s CM/ECF system, and (b) via First Class United States Mail to the parties listed on the service list. Further, the Trustee will post notice of any emergency hearing set on the Trustee s website, This notice is sufficient because the parties to be provided notice are those known and/or likely to have an interest in this matter. TRUSTEE'S MOTION FOR SETTING AND REQUEST FOR EMERGENCY HEARING PAGE 2

3 Case rfn11 Doc 241 Filed 03/25/15 Entered 03/25/15 17:42:34 Page 3 of 4 5. A hearing was not requested earlier because the Trustee s application was only recently approved by the Court on March 19, DATED: March 25, Respectfully submitted, THOMPSON &KNIGHT LLP By: /s/ David M. Bennett Texas Bar No Richard B. Roper Texas Bar No Texas Bar No Routh Street, Suite 1500 Dallas, Texas Telephone: 214/ Facsimile: 214/ David.Bennett@tklaw.com Richard.Roper@tklaw.com Katie.Clark@tklaw.com (PROPOSED)ATTORNEYS FOR CHAPTER 11 TRUSTEE H. THOMAS MORAN II TRUSTEE'S MOTION FOR SETTING AND REQUEST FOR EMERGENCY HEARING PAGE 3

4 Case rfn11 Doc 241 Filed 03/25/15 Entered 03/25/15 17:42:34 Page 4 of 4 CERTIFICATE OF CONFERENCE I hereby certify that on March 25, 2015, the Trustee s counsel conferred with counsel for the Official Unsecured Creditors Committee, counsel for the Ad Hoc Committee of Fractional Insurance Beneficiaries, counsel for the United States Trustee, and counsel for certain shareholders of the Debtor, and they were not opposed to the relief requested in this Motion. /s/ CERTIFICATE OF SERVICE I hereby certify that on March 25, 2015, a true and correct copy of the foregoing has been served on all parties entitled to service via this Court s ECF filing system and upon the parties listed on the attached service list via First Class United States mail, postage prepaid. /s/ TRUSTEE'S MOTION FOR SETTING AND REQUEST FOR EMERGENCY HEARING PAGE 4

5 Case rfn11 Doc Filed 03/25/15 Entered 03/25/15 17:42:34 Page 1 of 1 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS FORT WORTH DIVISION IN RE: CASE NO RFN-11 LIFE PARTNERS HOLDINGS, INC., CHAPTER 11 DEBTOR ORDER SETTING EMERGENCY HEARING ON DKT 240 CAME ON FOR CONSIDERATION, the Trustee s Motion for Setting and Request for Emergency Hearing [Dkt. ] (the Motion ) to consider the Trustee s Emergency Motion to Amend the Governing Documents and to File Voluntary Chapter 11 Petitions for Debtor s Subsidiaries [Dkt. 240] ( Motion to Amend and File ), and it appearing that proper notice of the Motion was given under the circumstances, and it further appearing that the Motion has merit and should be granted; it is therefore, ORDERED that the Motion is GRANTED; and it further ORDERED that a hearing on the Trustee s Motion to Amend and File shall be held on on, 2015 at :.m. (the Hearing ). # end of order # Solo Page