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Condensed and Consolidated Financial Statements for Entities in Bankruptcy
 9 Months Ended
Aug. 31, 2020
Condensed Financial Information of Debtor-in-Possession Disclosure [Abstract]  
Condensed and Consolidated Financial Statements for Entities in Bankruptcy Condensed and Consolidated Financial Statements for Entities in Bankruptcy
Condensed consolidated financial information for Lamington Road DAC is set forth below, presented at historical cost basis.

Lamington Road DAC
(Debtor-in-Possession)
Condensed and Consolidated Statements of Operations
Three Months Ended
August 31,		Three Months Ended
August 31,		Nine Months Ended August 31,Nine Months Ended August 31,
2020201920202019
Change in fair value of life settlements (Notes 11 & 16)$— $12,985 $— $(16,841)
Change in fair value of investment in limited partnership (Note 10 &15)— 15,352 — 15,352 
Realized Gain on Life Settlements, Net— 21,336 — 21,336 
Other income— 345 — 709 
      Total income— 50,018 — 20,556 
Interest expense— 23,331 — 28,331 
Change in fair value of White Eagle Revolving Credit Facility (Notes 12 & 16)— (26,586)— 17,094 
Loss on extinguishment of debt— 7,360 — 7,360 
Reorganization cost— 4,769 — 13,954 
Legal fees
— 158 — 890 
Professional fees
— 659 — 1,549 
Administrative service fees - affiliate
— — — 2,765 
Other general and administrative expenses— (71)— 469 
Total expenses
— 9,620 — 72,412 
Income taxes— — — — 
(Loss) income$— $40,398 $— $(51,856)
Lamington Road DAC
(Debtor-in-Possession)
Condensed and Consolidated Statements of Cash Flows

Nine Months Ended August 31,Nine Months Ended August 31,
20202019
Net cash used in operating activities$— $(58,793)
Cash flows from investing activities
Premiums paid on life settlements— (69,827)
Proceeds from maturity of life settlements— 92,505 
Net cash provided by/(used in) investing activities$— $22,678 
Cash flows from financing activities
Repayment of borrowings under White Eagle Revolving Credit Facility— (1,804)
Borrowings from White Eagle Revolving Credit Facility— 4,221 
Cash distributed to Parent Company
— (21)
Net cash provided by financing activities$— $2,396 
Net increase (decrease) in cash and cash equivalents— (33,719)
Cash and cash equivalents, at beginning of the period— 33,719 
Cash and cash equivalents, at end of the period$— $— 
Supplemental disclosures of cash flow information:
Cash paid for interest during the period$— $28,331 
Supplemental disclosures of non-cash financing activities:
Repayment of White Eagle Revolving Credit Facility by third party from proceeds of sale of life settlement $— $366,821 
White Eagle early extinguishment fees paid by third party from proceeds of Class D Shares$— $7,360 

Related Party Transactions

Certain related party transactions had been eliminated in consolidation. Due to the deconsolidation of Lamington, transactions after November 13, 2018 were no longer eliminated until the discharge of the Chapter 11 Cases, effective August 17, 2019 after which related party transactions are again eliminated in consolidation. The below is a description of related party transactions for the period.

Administrative Services Fees

In 2014, White Eagle entered into an Administrative Service Agreement with Imperial Finance and Trading ("IFT"). Under the agreement, IFT will perform certain non-discretionary, administrative or ministerial services to assist with certain reporting, compliance and document retention duties and obligations arising under or in connection with the Amended and Restated Loan and Securities Agreement. IFT shall recover all cost incurred in performing these services, with billings quarterly or annually. Bills will be based on actual cost or an appropriate allocation methodology. White Eagle incurred post-petition administrative service expenses of approximately $0 and $2.8 million during the nine months ended August 31, 2020 and 2019, respectively. Amounts due from White Eagle resulting from the administrative services during nine months ended August 31, 2019 were contributed on August 16, 2019 consistent with the Master Termination Agreement.
Promissory Notes Receivables

Effective May 16, 2014, Lamington entered into a 10 year, $59.3 million unsecured Promissory Note ("the 8.5% Promissory Note") in favor of its parent company, Markley Asset Portfolio, LLC ("Markley"). The amount was used by Lamington as the partial purchase price of Markley’s interest in White Eagle. The annual interest rate on the Promissory Note is 8.5% and is due to be paid at the end of each calendar year; provided that any interest accrued at the end of a calendar year which is not paid within seven business days thereafter shall be capitalized and increased to the outstanding principal balance. As of August 31, 2019, the outstanding principal balance was $86.5 million, which includes $27.2 million in capitalized interest. The entire remaining principal balance of the 8.5% Promissory Note shall be due and payable, together with all accrued but unpaid interest, on May 16, 2024. No principal payments are due prior to the maturity date.

Effective July 28, 2017, Lamington issued an unsecured Promissory Note to Markley, in a principal amount of $57.0 million. The amount represents distributions of earnings from Lamington's share of profits of White Eagle, to satisfy Profit Participating Notes issued by Markley to Lamington (the "Special Dividend Note").The Special Dividend Note matures on July 28, 2027 and bears interest at an annual rate of 5.0% provided that any interest accrued at the end of a calendar year which is not paid within seven business days thereafter shall be capitalized and increased to the outstanding principal balance. As of August 31, 2019, the outstanding principal balance was $59.9 million, which includes $2.9 million in capitalized interest. The entire remaining principal balance of the Special Dividend Note shall be due and payable, together with all accrued but unpaid interest, on July 28, 2027. No principal payments are due prior to the maturity date.

At August 16, 2019, the notes were fair valued in accordance with ASC 820, with a fair value of approximately $146.3 million, resulting in a change in fair value of approximately $89.7 million for the period up to August 16, 2019, which is included in change in fair value of investment in deconsolidated subsidiaries.

The Company stopped accruing interest on both notes during the Chapter 11 cases, effective August 17, 2019 the notes are consolidated, and interest expense has been eliminated on consolidation.