Quoted from ForceFlow:
Tuyo has paid $28k in premiums so far to make sure the insurance policies don't lapse. The judge noted that this was done without any court order protections, which he seemed to be impressed by.
I think a couple people have raised this particular question but I don't know if we've seen an answer yet.. how would TuYo have even had the knowledge of what policies needed these payments, if not for *drumroll* insider information?
I guess a logical explanation would be that the trustee does have this information, but I haven't seen/read/heard any indication that the trustee has been acting as the policy steward. If the trustee does have the info, would he be the one to accept/decline earnest money (unprotected) from TuYo to cover the premiums during the DR bankruptcy process? Is this perhaps why TuYo is the favored stalking horse bidder, their willingness to front money to cover the premiums and prevent policies from lapsing?
It would make sense for the Trustee to agree to this as it preservers the value of the remaining assets, but obviously Turner's (alleged) prior involvement directly with the policies makes it very questionable.
General question: is TuYo's behavior here "normal" for bankruptcies of investment firms that deal in life policies? That is, do speculators often swoop in to secure bulk life policies like this?