Item 8.01 Other Events.
On December 4, 2019 Emergent Capital, Inc. ("Emergent") and certain of its
subsidiaries (together with Emergent, the "Company") entered into a Settlement
Agreement and Mutual Release (the "Settlement Agreement") with Sun Life
Assurance Company of Canada ("Sun Life") and Wilmington Trust, N.A. as
securities intermediary ("Wilmington Trust"). The Settlement Agreement relates
to Sun Life Assurance Company of Canada v. Imperial Holdings, Inc., et al., Case
No. 13-cv-80385 BRANNON (consolidated with Case No. 13-cv-80730) (S.D. Florida)
(the "Legal Action"), which has been ongoing since 2013.
Pursuant to the Settlement Agreement, (i) thirty life insurance policies issued
by Sun Life and held by the Company, primarily by White Eagle Asset Portfolio,
L.P. ("White Eagle"), were canceled in exchange for a lump sum payment from Sun
Life $36,100,000, (ii) the Legal Action will be dismissed with prejudice, (iii)
Sun Life agreed not to challenge the validity of or to seek to deny coverage
(other than for non-payment of premiums) for certain life insurance policies
issued by it and held by White Eagle that were specifically excluded from the
settlement or have already matured, and (iv) Sun Life released all claims
against the Company and Wilmington Trust, and the Company and Wilmington Trust
released all claims against Sun Life.
In order to effectuate the settlement, a portion the proceeds under the
Settlement Agreement was used to repurchase the policies from White Eagle. Any
remaining proceeds were allocated in accordance with the requirements of the
Amended and Restated Limited Partnership Agreement of White Eagle.
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