Day 10 of the Executive Life of New York (ELNY) Liquidation Hearing was consumed by the closing summations of attorneys representing Objectors to the ELNY Restructuring Agreement proposed by the Superintendent of the New York State Department of Financial Services (Superintendent), as Receiver for ELNY. The Objectors included: ELNY structured settlement shortfall payees, ELNY policyholders and at least one structured settlement factoring company.
Attorney Megha Charalambides, speaking on behalf of her shortfall victim clients, proposed to presiding Judge John M. Galasso that he appoint a "Special Master" to meet with representatives of all parties for the purpose of considering possible alternatives to the Superintendent's proposed plan. If an alternative plan materialized by a specified deadline, the Judge could consider it. Otherwise, he could approve the Superintendent's plan. Judge Galasso did not immediately respond to Charalambides' proposal.
Representing Travelers, attorney Craig Ulman confirmed his client was prepared to make whole any ELNY-related structured settlement payment obligations funded on a "buy and hold" basis and that Travelers had already sent out notices to payees under such ELNY annuity contracts. On "cross-summation" attorney Edward Stone pointed out that Travelers is already legally obligated to make those payments and that Travelers' offer apparently does not apply to ELNY structured settlement payment obligations Travelers funded using a "Qualified Assignment".
Note: This prior S2KM blog post explains the difference between buy and hold and Qualified Assignment structured settlement funding. The problem for most, if not all, of the ELNY structured settlement shortfall victims with Qualified Assignment funding is that First Executive Corporation (FEC), the assignee/owner, collapsed in 1991 and no longer exists. This prior S2KM blog post provides a background summary of FEC's history.
Judge Galasso denied two motions by attorney Stone during his closing summation without offering explanations:
- Stone moved for a mistrial (which Judge Galasso re-characterized as a motion for a misorder) on the grounds that his clients' property was being taken without due process.
- Stone also moved for a 30 day stay of hearing to allow structured settlement shortfall victims to develop and present an alternative ELNY restructuring plan.
Closing summations continue on Thursday. For S2KM's complete reporting about the ELNY Liquidation Hearing, see the structured settlement wiki.