Kobre & Kim LLP: Information on the Insolvency of Executive Life Insurance Company of New York (ELNY)

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Kobre & Kim LLP is examining the circumstances regarding the potential short-changing of numerous annuity holders arising out of the insolvency of Executive Life Insurance Company of New York (ELNY).

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Kobre & Kim LLP, a firm focusing on investigations and financial products litigation, is examining the circumstances regarding the potential short-changing of numerous annuity holders arising out of the insolvency of Executive Life Insurance Company of New York (ELNY).

In connection with the insolvency of ELNY, on December 7, 2011, the New York Liquidation Bureau (NYLB) mailed shortfall letters to many individual ELNY structured settlement annuity beneficiaries (SSA payees) notifying them about the proposed liquidation and restructuring agreement filed in November, as well as the amount of shortfall for each SSA payee. Those shortfall letters follow up on the September 1, 2011 Petition for Order of Liquidation and Approval of Restructuring Agreement filed by the Superintendent of Financial Services. The Petition revealed that ELNY’s assets will be able to cover only approximately 34% of its remaining annuity obligations and that notwithstanding the anticipated contributions from various guaranty associations, approximately 21% of the annuities will have shortfalls (meaning less than the full amount of the annuity payments will be covered). Some of those shortfalls will be substantial, and many annuity owners have significant exposure. This matter was initiated in Supreme Court of Nassau County of the State of New York (Index No. 008023/1991).

Kobre & Kim LLP is working to understand the amount to which annuity holders may be entitled under various guaranty association acts and agreements with insurers, and is conducting an analysis of how exposure on the shortfalls may be reduced or eliminated. The Court has set a January 16, 2012 deadline for the filing of answering papers to the Petition for Order of Liquidation and Approval of Restructuring Agreement.

Kobre & Kim LLP is an international litigation boutique devoted solely to litigation and arbitrations, with a focus on insolvency and debtor-creditor disputes, as well as financial products and services litigation. The firm is well-known for its unique business model – avoiding repeat, ongoing client relationships to maintain its independence as advocates ready to serve as special litigation counsel against virtually any institution.

Please contact ELNYinfo(at)kobrekim(dot)com if you would like further information.

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Michael S. Kim

Carrie A. Tendler
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