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    MIAMI, FL - June 7, 2017 - Florida-based GrayRobinson law firm successfully represented ASM Capital, LLC and its affiliate, ASM Mosaic LLC as both Debtor in Possession and Exit Lender in support of a plan of reorganization that allowed Mosaic Management Group Inc. to confirm its Chapter 11 plan affording the debtors the ability recover as much as $60 million that might otherwise not have been recovered on behalf of the creditors.

    GrayRobinson represented ASM Capital, LLC and its affiliate ASM Mosaic LLC as both debtor in possession lender and exit lender in connection with the confirmed Chapter 11 bankruptcy of Mosaic Management Group, Inc., a company engaged in the international life settlement business. Prior to its bankruptcy filing, the company bought existing life insurance policies, then sold elements of those policies to others. 

    After the Chapter 11 action was filed, the company sought to sell its assets, which were, in large part, life insurance policies. That proposed sale process engendered a high bid of $18.5 million. But some investors and others questioned the company’s ability to successfully sell those policies.

    After an ownership and management change, the company pursued an alternative strategy depending largely on funding by ASM Capital, LLC and its affiliate ASM Mosaic, LLC, represented by GrayRobinson. Under that plan, $5 million in Debtor in Possession financing was obtained from ASM Capital, LLC. That strategy allowed the life insurance policies to be preserved and maintained during the course of the Chapter 11 through its successful conclusion.

    The Debtor in Possession financing provided the liquidity needed to fund operation shortfalls and ongoing premium obligations. That allowed for the development of a Chapter 11 plan that was jointly proposed by the debtors and the creditor and equity committees. Creditors from around the world were nearly unanimous in their approval of the plan, which was confirmed by the U.S. District Court, Southern District of Florida, West Palm Beach Division, on May 31, 2017.

    “This plan provided a resolution to the disputes over the ownership of the life insurance policies, as well as a potential recovery to creditors in excess of $60 million,” said Leyza F. Blanco, one of the two GrayRobinson attorneys who led the legal team.

    In addition to the $5 million in Debtor in Possession financing, the plan provided an additional $5 million in exit funding from ASM to necessary to fund ongoing premium obligations and administrative expenses and permitting the successful confirmation of the bankruptcy proceeding. ASM also provided an additional cash election to investors electing to cash out their investments.

    Blanco was joined by another GrayRobinson shareholder, Milton A. Vescovacci.


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