IN THE CIRCUIT COURT OF THE
SECOND JUDICIAL CIRCUIT, IN AND
FOR LEON COUNTY, FLORIDA
CASE NO.: 2009-CA-1568
IN RE: The Receivership of
INTERCONTINENTAL MARINE
SERVICE CORPORATION, D/B/A
FIRST WARRANTY GROUP OF FLORIDA
_____________________________________/
RECEIVER'S MOTION FOR ORDER APPROVING DISCHARGE ACCOUNTING
STATEMENT, DIRECTING FINAL DISCHARGE, AND AUTHORIZING DESTRUCTION
OF OBSOLETE RECORDS
The Florida Department of Financial Services, as Receiver of Intercontinental Marine Services
Corporation, d/b/a/ First Warranty Group of Florida (the “Receiver”), by and through the undersigned
counsel, hereby moves this Court for entry of an Order Approving the Discharge Accounting
Statement, Directing Final Discharge of the Estate, and Authorizing the Destruction of Obsolete
Records and as good grounds therefore states:
1.
Intercontinental Marine Service Corporation, d/b/a First Warranty Group of Florida
(“IMSC”) was a corporation authorized pursuant to the Florida Insurance Code to transact business in
the State of Florida as a motor vehicle service warranty company.
2.
This Court entered a Consent Order Appointing the Florida Department of Financial
Services as Receiver of IMSC for the purposes of Rehabilitation, Injunction and Notice of Automatic
Stay, effective July 28, 2009.
IMSC was subsequently placed in receivership for purposes of
liquidation on December 18, 2009.
3.
This Court has jurisdiction over the IMSC Receivership and is authorized to enter all
necessary and/or proper orders to carry out the purposes of the Florida Insurers Rehabilitation and
Liquidation Act, section 631.021(1), Florida Statutes.
4.
On December 10, 2013, this Court entered an Order Approving Receiver’s Motion for
Approval of Final Claims Report, Claims Distribution Report, and Distribution Accounting and
Authorizing Distribution. The Order authorized a distribution of estate assets in the amount of
$615,354.92 on class 2 claims, which constituted 44.1344% of the allowed amounts on those claims.
5.
A certain number of the final distribution checks were not mailed due either to a bad
address or a W-9 issue or were not cashed prior to the expiration date and remain unclaimed. After a
diligent search to locate the claimants due these funds, the Receiver will compile an unclaimed
property report pursuant to section 717.117, Florida Statutes. The Receiver plans to transfer said
unclaimed funds to the Department of Financial Services, Bureau of Unclaimed Property as
“unclaimed property” pursuant to section 717.119, Florida Statutes.
6.
The Receiver’s Discharge Accounting Statement—Projected as of April, 2014, (the
“Discharge Accounting”) is attached hereto and incorporated herein by reference as “Exhibit A.”
7.
As shown in the Discharge Accounting, the estimated value of all assets of the IMSC
receivership estate is projected to be $122,558.62 as of April 2014. Of that $122,558.62, approximately
$107,952.33 will be forwarded by the Receiver to the Department of Financial Services as “unclaimed
property.”
8.
As shown in the Discharge Accounting, the estimated value of the assets available for
“wind up” expenses is $14, 606.29. The Receiver requests authority to retain $4,100 as a reserve for
“wind up” expenses of the Receivership.
9.
Over the course of the IMSC receivership, certain services and resources funded by the
State of Florida budget appropriations have been used by IMSC. These costs are allocated across all
receiverships and shown on financial statements as contributed equity. Consistent with the Receiver’s
policies and procedures, it is customary for the Receiver to reimburse the Insurance Regulatory Trust
Fund as part of its windup activities. Based upon the de minimus amount and the prohibitive costs of
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making a distribution, the Receiver requests an order authorizing the Division of Rehabilitation and
Liquidation to remit to Insurance Regulatory Trust Fund any surplus expense funds remaining after
discharge and the balance of the estate’s assets.
10.
Upon approval of the Receiver’s request for final discharge, the records of the IMSC
receivership estate will no longer be needed, and it will be necessary to dispose of the obsolete
company records. Prior to the actual destruction of these records, the Division of Rehabilitation and
Liquidation will obtain a “Disposal Authorization Certificate” from the Division of Archives, History
and Records Management of the Florida Department of State.
11.
Although such recovery is unlikely, the Receiver requests an order authorizing the
Division of Rehabilitation and Liquidation to remit to the Insurance Regulatory Trust Fund any assets
which may be recovered following the discharge of this receivership if, in the Division’s sole
discretion, the value of the recovered assets does not justify the re-opening of this receivership estate.
12.
The Receiver requests an Order that it shall be fully and finally discharged of its
responsibilities in this receivership as of 11:59 P.M. on April 30, 2014.
WHEREFORE, the Receiver respectfully requests this Court enter an Order:
A.
Authorizing the Receiver to transfer $107,952.33 to the Department of Financial
Services as unclaimed property;
B.
Approving and adopting the Receiver’s Discharge Accounting Statement;
C.
Authorizing and directing the Receiver to retain $4,100 as a reserve for “wind up”
expenses of the Receiver;
D.
Authorizing the Receiver to remit any surplus expense funds remaining after
discharge and the balance of the estate’s assets to the Insurance Regulatory Trust Fund;
E.
Authorizing the Receiver, after final discharge, to destroy any obsolete records in the
Receiver’s possession;
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F.
Directing, without further order of this Court, the final discharge of the Receiver of
its responsibilities in this receivership estate as of 11:59 p.m. on April 30, 2014; and
G.
Authorizing the Division of Rehabilitation and Liquidation to remit to the Insurance
Regulatory Trust Fund any assets which may be recovered following the discharge of this
receivership if, in the Division’s sole discretion, the value of the recovered assets does not justify
the re-opening of this receivership estate.
Respectfully Submitted on this the 2nd day of April 2014.
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IN RE: The Receivership of
INTERCONTINENTAL MARINE
SERVICE CORPORATION, D/B/A
FIRST WARRANTY GROUP OF FLORIDA
_____________________________________/
CASE NO.: 2009-CA-1568
EXHIBT A
DISCHARGE ACCOUNTING
Intercontinental Marine Service Corporation
Discharge Accounting Statement
Projected for Discharge in April 2014
ASSETS
Cash
Total Assets
$
$
Amount
122,558.62
122,558.62
Schedule A
LIABILITIES
Unclaimed Property to DFS - Outstanding Checks from Distribution Account
Total Liabilities
Recommended
Disbursement
$ 107,952.33
$ 107,952.33
WINDUP SUMMARY
Funds Available for Windup Expenses
Projected Windup Expenses
Balance (Any Remaining Funds to the Florida Regulatory Trust Fund
Index to Attached Schedules:
Schedule A - Available Cash Projection
Schedule B - Allocated State Funds Expensed
Schedule C - Interest Earnings Projection
Schedule D - Receiver Windup Expenses
Schedule E - Contributed Equity from the Regulatory Trust Fund
14,606.29
(4,100.00)
10,506.29
Schedule D
Schedule A
Intercontinental Marine Service Corporation
Available Cash Projection
Projected for Discharge in April 2014
Cash Balance as of
February 28, 2014
Beginning Cash Balance
$
Transfer from Closure of Distribution Account
Transfer from Regulatory Trust Fund
Apr-14
$ 101,639.62
75,850.06
30,000.00
Storage, Utilities, Postage, Bank fees
Sub-total
Allocated Receiver Expenses
Labor & Benefits
Indirect Expenses
Sub-total
500.00
500.00
500.00
500.00
8,651.00
30.00
8,681.00
Cash Balance Before Interest Earnings
Interest Earnings
Actual February interest earned on SPIA APR on
the previous month's average Pooled Cash
Ending Cash Balance
Mar-14
34,936.45
$
34,936.45
$
1
8,651.00
30.00
8,681.00
2
101,605.51
122,458.62
27.40
100.00
101,632.91
$ 122,558.62
Assumptions for Allocated Receiver Expenses:
1
2
Labor & Benefits: This estimate is based on a four month actual average.
November Actual
December Actual
January Actual
February Actual
Sub-total
4 month actual average (rounded)
9,587.04
13,102.98
7,185.97
4,729.01
34,605.00
8,651.00
Indirect Expenses: This estimate is IMSC's estimated pro rata share of the Receiver's estimated total
indirect expenses. The pro rata share calculation is based on IMSC's estimated total assets divided by the
Receiver's estimated total assets for all receiverships.
Estimated Total Asset %
0.01%
Estimated Total for the Receiver
$
150,000.00
Estimated Expense (doubled for increased activity)
$
30.00
1
2
Schedule B
Intercontinental Marine Service Corporation
Allocated State Funds Expensed (Contributed Equity)
Projected for Discharge in April 2014
March-14
Estimated Accrual of Allocated State of Florida Expenses
Labor & Benefits
Indirect Expenses (interest)
Total
$
-
$
April-14
1
$
2
$
Totals
-
1
2
Assumptions for Allocated State of Florida Expenses:
1
Labor & Benefits: This estimate is based on a four month actual average.
November Actual
December Actual
January Actual
February Actual
Sub-total
4 month actual average (rounded)
2
-
Indirect Expenses: This estimate is IMSC's estimated pro rata share of the Receiver's estimated total
indirect expenses. The pro rata share calculation is based on IMSC's estimated total assets divided by the
Receiver's estimated total assets for all receiverships.
Estimated Total Asset %
Estimated Total for the State
Estimated Expense (rounded)
$
$
0.01%
20,000.00
-
$
$
$
-
Schedule C
Intercontinental Marine Service Corporation
Interest Earnings Projection
Projected for Discharge in April 2014
Interest accrued for March 2014
Beginning cash balance at 3/1/2014
Ending cash balance at 3/31/2014
$
Average cash balance for March
Assumed SPIA interest rate (Annualized)
34,936.45
101,632.91
68,284.68
1.00%
Subtotal (Annualized)
682.85
Accrual for March (Rounded)
$
100.00
Interest accrued for April 2014
Beginning cash balance at 4/1/2014
Ending cash balance at 4/30/2014
$
101,639.62
122,558.62
Average cash balance for April
Assumed SPIA interest rate (Annualized)
112,099.12
1.00%
Subtotal (Annualized)
Accrual for April (Rounded)
1,120.99
$
100.00
Schedule D
Intercontinental Marine Service Corporation
Receiver Windup Expenses
Projected for Discharge in April 2014
Windup Expenses (Projected)
Records storage, records destruction, bank fees
tax returns for 2013-14
Total
$
4,100.00
$
4,100.00
Schedule E
Intercontinental Marine Service Corporation
Statement of Contributed Equity - Estimated Balances
Projected for Discharge in April 2014
I. Contributed Equity Balance as of 2/28/2014
March - April Accrual (Estimate from Schedule B)
$ 27,059.60
$
-
Total
$
-
Projected Contributed Equity Balance as of 4/30/2014
$ 27,059.60