Division of Rehabilitation and Liquidation

Claim Evaluations and Distributions

Pursuant to the Rehabilitation Order, the Receiver has conducted the business of Cumberland and taken steps toward the removal of the causes and conditions which made the Consent Order necessary, as well as taken further action as deemed appropriate to attempt to reform and revitalize the company. Additionally, the Receiver has conducted substantial investigation into the affairs of Cumberland and made significant efforts to try to salvage monies towards payment of potential losses in an attempt to maximize value to claimants in the receivership.

On July 29, 2009, the Receiver filed the Receiver's Status Report and Motion for Approval of Rehabilitation Plan ("Motion"). On July 30, 2009, the Court issued an Order Approving Receiver's Status Report and Plan of Rehabilitation ("Order"). The rehabilitation plan is summarized below however copies of both the Motion and Order can be reviewed in their entirety, by clicking here.

Below is a summary of the Receiver's Approved Rehabilitation Plan:

• All outstanding Cumberland bonds are hereby cancelled effective sixty (60 days) from the date of the Order. The effective cancellation date for all outstanding bonds is September 28, 2009.
• A claims filing deadline of January 26, 2010 is established. All claims are to be submitted to the Receiver on or before the claims filing deadline. Claims submitted after the claims filing deadline shall be denied unless otherwise ordered by the Court.
• The Receiver is authorized to issue notice to claimants. All known potential claimants are being mailed a proof of claim form. In addition, the Receiver will publish notice in various publications.
• Any previous offers of settlement not accepted and finalized are hereby withdrawn.
• The Receiver establishes a process for the review of claims and objection process.
• The Receiver establishes a process for the release of collateral.

Claim Evaluations and Distributions

On April 23, 2010, the Receiver filed a motion with the Court for approval of the Global Claims Report. On April 28, 2010, the Court issued an Order approving the report. On May 4, 2010, notices were mailed to 153 Cumberland claimants informing them of the Receiver’s recommendations concerning the classifications and amounts on their claims, along with instructions on how to proceed if a claimant objects to the recommendations. Objections were required to be filed by the claimant, in writing, with both the Court and the Receiver and postmarked by June 3, 2010. Objections filed after that date were not considered.

On December 14, 2010, the Receiver prepared 14 distribution checks for Oregon claimants. The checks represented 100% of the evaluated and adjudicated amounts of the Oregon claims. Checks were mailed on December 17, 2010.

On May 18, 2011, The Receiver filed a motion with the Court for approval of the Final Claims Report, Claims Distribution Report, Distribution Accounting and for Order Authorizing Distribution. On May 20, 2011, the Court issued an order approving the report and authorizing the Receiver to mail distribution checks to claimants. On May 27, 2011, 107 distribution checks representing 51.1668% of the evaluated and adjudicated claim amounts were mailed along with instructions for claimants to deposit their checks within 30 days. Any un-cashed checks will be sent to the Florida Department of Financial Services, Division of Unclaimed Property.

The Receiver intends to close this receivership prior to the end of calendar year 2011.

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