The New York Liquidation Bureau (NYLB) website for Executive Life of New York (ELNY) has announced an ELNY Facilitation Plan to assist owners of ELNY structured settlement annuities (SSAs) make supplemental payments to ELNY SSA payees and to coordinate those payments with the ELNY benefit payments scheduled to be made by the Guaranty Association Benefits Company (GABC) under the ELNY Restructuring Plan approved by Judge John Galasso on April 16, 2012 as part of the ELNY Liquidation Order.
The ELNY Liquidation Order is currently being appealed by 18 structured settlement shortfall payees who allege due process violations and improper granting of immunities and injunctions to protect the Superintendent of New York's Department of Financial Services, and his agents, acting as ELNY's Receiver. For more detailed S2KM reporting about the ELNY appeal, see the structured settlement wiki.
Key Elements of the ELNY Facilitation Plan
- Optional agreement between GABC and each ELNY SSA owner that chooses to become party to it.
- Ancillary to the Restructuring Plan and, therefore, does not need to be executed in order for the Restructuring Plan to close.
- GABC has contracted with third-party administrator Alliance-One Services, Inc. to make benefit payments to SSA payees on behalf of GABC.
- Participating ELNY SSA owners will have the option to direct supplemental payments to their SSA payees through Alliance-One Services.
- If SSA Owners exercise this option, they will be responsible to provide funds to Alliance-One Services who will then make payments to the appropriate SSA payees.
- Neither GABC nor Alliance-One Services will be responsible for funding any SSA owner payments.
- If SSA Contract owners prefer to make other arrangements to pay SSA payees, they are not required to participate in the Facilitation Plan.
- Drafted and negotiated by representatives of GABC and a group of ELNY SSA owners, the Facilitation Plan is not subject to negotiation by individual ELNY SSA owners.
For a summary of the Facilitation Plan as well as the Facilitation Plan itself, see the NYLB's ELNY website.