Universal Settlements International Inc.

Frequently Asked Questions

When should I expect my first distribution?
How much of the distribution will I receive?
How will I receive my portion of the distribution?
What is the status of my policy?
I notice that my policy has matured. Where is my money?
What happens if you run out of money for premiums?

What is the CCAA?
What is a Plan of Compromise and Arrangement?
Was applying for CCAA the best option available to Universal?
Why wasn’t I informed about this?
Who ensures the proper implementation of the Plan?
How does the Monitored Trust Account work?

How do I change my address?
Am I able to sell my claim to someone else?
Can I request payment by check or wire transfer?

I am an M-Series investor. What is the status of my investment?

Payments


When should I expect my first distribution?


Under the Plan of Compromise and Arrangement, the first distribution will occur as soon as practicable after June 1, 2010 once the Monitored Trust account has accumulated a balance which has a minimum surplus of $5 million over the Reserve for Costs.. The Reserve for Costs shall be maintained in an amount sufficient, in the Monitor’s sole discretion, to pay the anticipated Costs for the following two years for premiums, administration fees, borrowing costs, litigation fees and professional fees. The Plan has been modeled such that after the first distribution has been made, the following distributions will occur on an annual basis, but no more frequently than semi-annually, in each case subject to the availability of funds for the payment of distributions. For more information please refer to sections 2.2, 4.3 and 4.10 in the Plan of Arrangement.

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How much of the distribution will I receive?


The distribution will be made on a pro-rata share based on the pool of investors and their investment amount. The Plan has been structured to achieve the return of 100% of an investor's invested capital over the course of approximately six years. It is also the goal of the Plan that you will receive a return on your initial investment. Once your initial principal is returned, we anticipate that a number of policies within the portfolio will still remain. The remaining policies are how we plan to achieve a return on your investment. For more information please refer to sections 4.6 and 4.10 in the Plan of Arrangement.

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How will I receive my portion of the distribution?


The distribution payments will be made by check and mailed to you. If you would like to receive your distribution payment by wire, please complete and return the Wire Request form which may be found on our Client Services page. Please note that distributions will only be made payable to the named claimants and will not be made to any third parties.

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What is the status of my policy?


As per the Court-Approved Plan of Arrangement, all policies have been “pooled” for the benefit of all creditors. Once a policy matures, a claim is made with the insurance company. The proceeds received from the claim are deposited into the Monitored Trust Account. To view a complete list of policies, please refer to our Portfolio Information section of this website. Please note that all policies in this portfolio are in force and up to date.

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I notice that my policy has matured. Where is my money?


As per the Court-Approved Plan, all policies have been “pooled” for the benefit of all creditors. The funds from the maturities will be deposited to the Monitored Trust Account.

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What happens if you run out of money for premiums?


The Plan calls for a Reserve for Costs to be maintained in an amount sufficient, in the Monitor’s sole discretion, to pay anticipated Costs for the following two years. Failing this, we have the ability to borrow against the policy values in order to ensure that we have sufficient funds available to carry out the Plan. Please refer to section 4.4 within the Plan for specific details.

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CCAA


What is the CCAA?


The CCAA is the Companies’ Creditors Arrangement Act. This Act allows financially troubled companies to be protected from their creditors while they restructure their financial affairs and propose a Plan of Compromise and Arrangement. This Act is governed under Canadian law.

Canadian CCAA information may be found on the Department of Justice's website.

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What is a Plan of Compromise and Arrangement?


A Plan of Compromise and Arrangement is an action plan for a company under creditor protection to find a solution to paying off their debts. This Plan must be approved by the court and voted on by creditors. In the event that a company does not get court or creditor approval, the result is a liquidation of the company by a receivership or bankruptcy.

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Was applying for CCAA the best option available to Universal?


In Universal’s view, CCAA was the best option in order to protect the investors’ interests. The only other option would have been to have a receivership appointed to liquidate the assets of Universal. Creditors would have likely received significantly less of their invested principal than what they will receive under the Plan. Please refer to Section 2.3 within the Plan for specific details of the various benefits of the Plan.

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Why wasn’t I informed about this?


A “Notice to Creditors of Universal Settlements Int’l. Inc.” was mailed to every creditor on January 23, 2009. Please refer to the Claims section of the Ernst & Young website to see the details of the Claims process. If you did not receive notice of the status of Universal, it may have been because you had not updated your contact information with us and we were unable to verify your location. If you have not received any correspondence please Contact Us.

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Who ensures the proper implementation of the Plan?


Ernst & Young act as the court appointed Monitor. The Monitor’s role is to supervise the Plan and Universal’s compliance with the Plan. The Monitor has access to all financial records and may request at any time various policy information to verify the status of each policy. The Monitor must approve all fund transfers from the Monitored Trust Account, such as premium payments, policy fees, etc. Please refer to Section 5.1 within the Plan for specific details.

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How does the Monitored Trust Account work?


The Monitored Trust Account is held by Universal and monitored by Ernst & Young. All payments from this account must be approved by Ernst & Young. Please refer to Section 4.2 within the Plan for specific details of what funds are deposited into this Account and under what circumstances funds can be removed from this account.

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Client Services


How do I change my address?


Please refer to our Client Services page and follow the instructions listed.

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Am I able to sell my claim to someone else?


Please refer to our Client Services page and follow the instructions listed for third-party transfers.

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Can I request payment by check or wire transfer?


Distributions will be made by check. If you would prefer to receive distributions by wire, please refer to our Client Services page and follow the instructions for the Wire Request form.

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M-Series


I am an M-Series investor. What is the status of my investment?


Your investment was not affected by the CCAA and your documents may be viewed through the Client Services page. Policies are in force and monitored under the M-Series Trust managed by Mills, Potoczak & Co., Trustee.

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Source: www.universalsettlements.com