Securities Exchange, et al v. Mutual Benefits Corp, et al

Filing 3142

ORDER Adopting 3130 Report and Recommendations and granting 3065 Trustee's Motion to Approve Procedures for Sale of Policies in Connection with the Trust Termination. Signed by Judge Federico A. Moreno on 6/28/2022. See attached document for full details. (mmd)

UN ITED STATES DISTRICT COURT FOR Tf'
IE
SOUTHERN DISTRICT OF FLOIYDA
FortLauderdale Division

CaseNum bet:04-60!73-CIV-M ORENO

SECURITIESAKD EXCHANGE
COM M ISSION etal.,
Plaintiff,
VS.

M UTUAL BENEVITS CO1kP.qtal.,
Defehdants.

O RDER ADOPAING M AGISTM TE JUDGX'S REPDRT AND RECOM M ENDATIO N
AND GM NTING TRUSTEE'S M OSION TO APPROVE PRO CEUURES FOR SALE

OFPOLICIESIN CONNECTION W ITH TRUST TERMINATION
THE MATTER wasreferredtotheHohorableJaredM .Strauss,Uflited jtatesM agistrate
Judge,foraReportand Recom mendation on Trustee'sM otion to ApproveProcedutesforSale of

Policiesin Connectioh with TrustTermination (D.E.3063)filed on Januao 21..2021. The
M agistrateJudgefiled aReportandRecommehdation(D.E.3110)on April9.2021.TheCotu't
hasreview ed the entire file and record. The Courthasm ade p.de novo review ôfthe issuesthat

the objections to the M agistrate Judge's Repott and Reçommendation present, and beihg
otherwise fully advised in theprem ises,itis

ADJUD GEb that United States M agistrate Judge Jated M . Strauss's Repol't and

Recomm endation isAFFIRM ED and Abop-tEo. Accordingly,itis

ADJUDGED thât Trustee's M otion to Approve Procedutes for Salç of Policies itl
,

.

ColmecttonwithTrustYerminationisGRANTED asfollows:

.

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1) The'Vnzsteeisauthorized to implementtheprocedtlresforthe sale ofthe rem sining
-

KeepPoliciesheldbytheTnlstassetforth intheM otion,subjecttothemodificationj
reflected in D .E. 3107-1. N otwithstanding the foregoihg, the Trustèe m ay nQt

condition Acheron's access to the data room and Acheron's participation in the
auction oflAcheron waiving any claiisagainstthe Trustee ortherighttp appe>l.

2) TheNotice to Keep Policy Investors attached to the motion provides an adequate
sùmm ary ofthereliefsoughtin themotion.

3) The Trustee is authorized to enter iflto an Abset Purchase Agreementts) with
prospective 'Estalking horse''buyersofthe Keùp Pöliciesconsistentwith thetermsset

forth in and subjectto the procedurès setforth in the motion.However,the Assef
PurchaseAgreementts)sha11providethattheclosingofany saleshallocctlr'seven(7)
daysafterthe entry ofa SaleApprovalOrder(asdefined in themotion).
'TheAsset
PurchaseAgreemehtts)shallfurtherprövidethatlftheSaleApprovalOtderisstaye'
d
priortoclosing,closingshallocclzrseven (7)daysafterany such stayislifted..
Upon the selection of a Gsstallcing horse''buyet or buyers,the Trustee shall file a

Noticeof'êiling indicating:(a)theamountsandmatetialtetmsandconditionsofthe

ççstalking horse''offerg,(b) the time and date of the auction ahd other relevant
deadlines,and (c)any otherinformation relevahtto theconductoftheattdion sale.
N oticethereofshallbeprbvided assetforth in theM otibn.

5) Uponthesubmission oftheNoticeofFiling,M agistrateJudgeStrausswillschedulea
heating for the frst available date aftef the scheduled date of the auçtion, for

cohsideratioflofthe M otion forEntry ofSaleApprpvalOfderto be filed pursuM tto
Paragraph 9 below. Ifno hearing'
isscheduled within oneweek ofthe submission of

theNoticeofFiling,theTrustee'scounselshallprom ptly contactcham bers.

6) The Bidding Procedures set forth in the M otion, including the procedures for
qualitications of bidders,for subm ission of qualitied bids,for subm ission of higher

and betteroffers,and fortheconductoftheauction,including them eansofproviding
notice ofthe bidding procedures,are approved,except as set forth in Paragraph 1
above.

-1-heTnzstee isauthorized to proçeed with an auction sale consistentwith theBidding
,

Procedures am ong bidders w ho tim ely satisfy the qualitications set fot'th in the
Bidding Procedures,as determ ined by the Trustee,except as setfol'th in Paragraph 1
above.

8) Atauction,theTrustee'willsolicitthehighestandbestbidfortû-l-rancheA,''ççl-ranche

A-1,''Sç-franche B,''and Is-franche B-1''(if applicable),as defined in the motion,
pursuantto the bidding procedures,and shallselectthe highestand bestbid (and
back-upbid)forçachttanche.
9) Upontheconclusion oftheauction,theTrusteeshallfileaM otion forEntry ofSale

ApprovalOrderwhichshall:(1)jetforththeTrustee'sdetermination,in theexercise
ofhis businessjudgmentand discretion ofthehighestand bestbids (and back-up
bids) submitted at auction; and (b) request entry of the Sale Approval Order
authorizing and approving the sale of the K eep Policies to the highest and best

bidderts).M agistrate Judge Strauss will schedule and conduct a hearing on the
M otion forEntry of Sale ApprovalOrderin accordance w ith Paragraph 5 above.

!

10)Theprocedures,asapproved by thisOrder,representan appröpriatçahd reasonable
exercise ofthe Trusteè's discretion and businessjudgmentand further satisfy $he
contractualrightsofAcheron underSection 4 ofthe2015Agreem ent.
D ON E AN D OR DERED in Cham bers atM iam i,Florida,this

rEDEItIC

1-ofJune2022

. ORENO

UNJTE , TATES DISTRICT JUDGE
Copies funtished to:

United StatesM agistrate Judge JaredM .Strauss
CounselofRecord
'.

.