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HOUSTON, Sept. 4, 2021 /PRNewswire/ — The Supreme Court of Bermuda recently held a hearing involving the Northstar Financial Services liquidation, and policyholders were sent a notice by the Joint Provisional Liquidators (“JPLs”). The JPLs state that this hearing was ex-parte, a Latin term used in law meaning that the hearing was done without additional or adverse parties present. The only party talking to the judge about the issue were the JPLs, although they also explain that the Northstar Ad Hoc Committee of Inspection attended. Most likely, the members of the committee were present but did not address the court themselves.
The outcome of the recent hearing is that the court has decided that different class representatives for each of the types of policies, meaning one for variable policies, one for fixed policies, and one for anyone else, must be appointed. This is necessary because of the conflicts of interest that exist between these different groups of people. As we have written about previously, Northstar has limited funds and there may not be enough to go around and pay back everything that is owed to everyone. As a result, more money being allocated to variable policyholders, for example, means that much less money is available for recovery of the fixed policyholders. By having a class representative for each group, those individuals will be permitted to address the court directly and advocate on behalf of their group. This should help the JPLs avoid complaints, legitimate or not, that they unfairly or improperly preferred one group over another.
Ultimately, the result of the liquidation proceeding is up to the court. The class representatives are not being given authority to make any final decisions. However, their positions may end up affecting the net result for how the available funds are ultimately allocated.
The next hearing date set by the court appears to be after October 21st, presumably once class representatives have been proposed. October 21st is the earliest date, so in all likelihood the next meeting will be in November or December of 2021. The meetings involving the class representatives may not happen till 2022.
If you were invested in any Northstar products including Northstar Bermuda, please contact us below:
US Toll Free: (800) 259-9010
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