SEC Filings
 |
| 10-Q | |
| HRG GROUP, INC. filed this Form 10-Q on 05/05/2017 | |
| Entire Document | |
| << Previous Page | Next Page >> | |
At March 31, 2017, FGL estimated the total cost for the settlement, legal fees and other costs related to Cressy would be $9.2, with a liability for the unpaid portion of the estimate of less than $0.1. FGL had incurred and paid $6.0 related to legal fees and other costs and $3.2 related to settlement costs as of March 31, 2017. Based on the information currently available, FGL does not expect the actual cost for settlement, legal fees and other related costs to differ materially from the amount accrued. On January 7, 2015, a putative class action complaint was filed in the United States District Court, Western District of Missouri (the “District Court”), captioned Dale R. Ludwick, on behalf of Herself and All Others Similarly Situated (the “Plaintiff”) v. HRG, FGL Insurance, Raven Re, and Front Street Cayman (together, the “Defendants”). The complaint alleged violations of the Racketeer Influenced and Corrupt Organizations Act, requested injunctive and declaratory relief and sought unspecified compensatory damages for the putative class in an amount not presently determinable, treble damages, and other relief, and claims Plaintiff Ludwick overpaid for her annuity. On February 12, 2016, the District Court granted the Defendants’ joint motion to dismiss the Plaintiff’s claims. On March 3, 2016, Plaintiff Ludwick filed a Notice of Appeal to the United States Court of Appeals for the Eighth Circuit (the “Court of Appeals”). On April 13, 2017, the Court of Appeals affirmed the District Court’s decision to dismiss the Plaintiff’s claims. The Plaintiff has no appeal as of right from the Court of Appeals’ decision but may seek discretionary review by the Court of Appeals en banc or by the United States Supreme Court. The Plaintiff’s time to seek discretionary review will expire on July 12, 2017. As of the date of this report, FGL does not have sufficient information to determine whether it has exposure to any losses that would be either probable or reasonably estimable. Unfunded Lending Commitments Salus and FGL had unfunded investment commitments as of March 31, 2017 based upon the timing of when investments are executed compared to when the actual investments are funded, as some investments require that funding occur over a period of months or years. Through Salus, the Company enters into commitments to extend credit to meet the financing needs of its asset based lending customers upon satisfaction of certain conditions. At March 31, 2017, the notional amount of unfunded, legally binding lending commitments was approximately $3.8, which all expires in 1 year or less. FGL had unfunded investment commitments of $210.7 as of March 31, 2017. (14) Related Party Transactions FGL has invested in CLO securities issued by Fortress Credit Opportunities III CLO LP (“FCO III”) and also invested in securities issued by Fortress Credit BSL Limited (“Fortress BSL”). The parent of both FCO III and Fortress BSL is Fortress Investment Group LLC (“Fortress”), which has acquired interests greater than 10% ownership in HRG as of March 31, 2017. Such CLOs had an aggregate total carrying value of $275.2 and $203.2 as of March 31, 2017 and September 30, 2016, respectively, of which $18.5 and $18.0, respectively, was included in the funds withheld receivables portfolio of Front Street. The Company’s net investment income from such securities was $3.1 and $6.1 for the three and six months ended March 31, 2017, respectively, of which $0.3 and $0.6, respectively, was included in “Net investment income”, and the remaining $2.8 and $5.5, respectively, was included in “(Loss) income from discontinued operations” in the accompanying Condensed Consolidated Statements of Operations. For the three and six months ended March 31, 2016, the Company’s net investment income from such securities was $2.3 and $4.5, respectively, of which $0.2 and $0.5, respectively, was included in “Net investment income”, and the remaining $2.0 and $4.0, respectively, was included in “(Loss) income from discontinued operations” in the accompanying Condensed Consolidated Statements of Operations. 33 | |
| << Previous Page | Next Page >> | |