LTC Holdings, Inc.
LTC Holdings, and its affiliated debtors (LTC), a Detroit based civil engineering and construction firm, filed for Chapter 7 Bankruptcy protection in on May 2, 2014. At the time of the filing, the various debtors had more than $185 million in combined assets.
MANAGEMENT LIABILITY POLICY
Each of the six debtors have listed as an asset, a $10 Million interest in a management liability policy. In fact, each entity shares the same insurance policy with a $10 Million aggregate limit. The Trustee engaged counsel to sue the policies, resulting in total settlements of $4,790,000, which was received in June 2017. There is still one current action against the Insurance Company of the State of Pennsylvania for payments received under a specific contract. The total payments sought are $3,654,112.85.
CORPORATE INCOME TAX RETURNS
The 2013 Corporate tax return has been filed, resulting in an expected corporate income tax refund of $5,324,493. The refund has been approved by the IRS. These refunds were subject to counter-claims and U.S. Government set-offs, including the request for equitable adjustments below. These counter claims have been resolved. The Trustee has also pursued various refunds from various payroll tax filings relating from 2012