by John Darer
A.M. Best has dinged 321 Henderson Receivables V LLC, by placing 3 tranches of its Series 2008-3 under review with negative implications
According to A.M. Best 's October 10, 2011 press release, the rating action was attributed to the fact that the Superintendent of Insurance of the State of New York has petitioned (dated August 31, 2011) the Supreme Court of the State of New York County of Nassau for an Order of Liquidation and Approval of a Restructuring Agreement for Executive Life Insurance Company of New York (ELNY), a foundering life insurance company, which issued structured settlement annuities The structured settlement payment rights were subsequently purchased by the issuer. A.M. Best believes that the Liquidation and the Restructuring Agreement indicates that ELNY’s ability to meet its ongoing contract obligations will be diminished.
It is unclear what protections buyers of ELNY structured settlement payment rights, or those who previously bought ELNY structured settlement payment rights, will have under the Executive Life of New York liquidation and restructuring. This has implications for those who buy factored structured settlement payment rights as an investment and the situaton should be monitored closely.
Read the Press Release