Melville Capital Brokering A&O Portfolio
Posted July 26, 2010 4:52PM PST

Melville Capital is soliciting bids in the sale of a portfolio of 27 life insurance policies held by bankrupt A&O investment funds.

Court-appointed Trustee Jeff Marwil filed a motion today to establish sale procedures for the policies, according to a statement from New York-based Melville Capital. The brokerage was hired to handle the resale of the A&O portfolio in November.

Seven A&O Life Fund entities filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Chicago in September. More than 700 investors are seeking to recover approximately $92 million invested in the funds.

"The A&O situation really is a tragedy because many investors have lost substantial amounts of money in these policies," said Melville Capital Managing Director Doug Himmel in the statement.

Marwil, a partner at the Chicago law firm Proskauer Rose, told the court in a June filing that he intended to liquidate the portfolio after new analysis determined that the life expectancies were generally more than 125 months. The policies have a face value of $102.83 million, according to the June report.

Melville Capital will pursue traditional and non-traditional routes to attract the highest and best possible bids, the company said in the statement. Interested qualified buyers are encouraged to contact Melville Capital directly to be part of the court-approved bid process.


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