•uncertainties and estimates related to our ability to make cash distributions in satisfaction of payment obligations as life insurance policies mature.
The change in estimated fair value of the Trust’s life insurance Policies includes realized gains (losses) on matured policies in addition to unrealized gains (losses) on policies which are affected by unwinding the discount over time, and changes in valuation assumptions, including mortality, cost of insurance and discount rates. Based upon our planned comparison of actual maturities to projected maturities, management elected to discontinue the use of LEs in favor of default mortality multipliers based on the 2015 Valuation Basic Table which increased the unrealized loss in 2018.
Outstanding debt at December 31, 2019 was $25.8 million and included $24.9 million secured 15-year promissory note issued by the Trust to the IRA holders (“New IRA Notes”), and $0.9 million to the Chapter 11 trustee, as defined below. Outstanding debt at December 31, 2018 was $42.6 million and included $4.0 million of outstanding principal on the Vida Opportunity Fund, LP loan, $35.9 million of New IRA Notes, and $2.7 million to the Chapter 11 Trustee.
To provide for short term capital needs of the Position Holders Trust, if any, effective as of January 30, 2019, the Position Holders Trust entered into a $15 million revolving credit facility with Veritex Community Bank of Dallas, Texas. The Veritex Credit Facility, is secured by a lien on the Position Holder Trust’s assets, has an initial 2-year term and, as to any amounts drawn thereunder, shall bear interest at the rate of 6% per annum. As of December 31, 2019 there is no outstanding balance for the revolving credit facility.
At December 31, 2019, the Position Holder Trust had $80.8 million of cash primarily consisting of $56.2 million held to pay Policy premiums on behalf of the Trust and the continuing fractional holders, $8.9 million held to pay maturities collected and owed to current fractional holders, $14.9 million held as collateral deposits on debt, and $0.8 million was available to pay for operating expenses of the Trust. At December 31, 2018, the Position Holder Trust had $51.9 million of cash primarily consisting of $32.1 million held to pay Policy premiums on behalf of the Trust and the continuing fractional holders, $14.3 million held to pay maturities collected and owed to current fractional holders, $4.8 million held as collateral deposits on debt, and $0.7 million was available to pay for operating expenses of the Trust.
The Position Holder Trust paid $16.5 million and $31.0 million of its outstanding notes payable during the years ended December 31, 2019 and 2018, respectively. There were no new financing activities during the years ended December 31, 2019 and 2018. Subsequent to the end of the reporting period, on January 27, 2020 the Trust paid the final installment on the note to the initial Trustee and the note has now been completely satisfied.
The Trust follows ASC 820, Fair Value Measurements and Disclosures, in estimating the fair value of its life insurance policies, which defines fair value as an exit price representing the amount that would be received if an asset were sold or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.
Maturities receivable consist of the Trust’s portion of life insurance policy maturities that occurred, but payment was not yet received as of the reporting period.
Maturity Liabilities are maturities collected on behalf of continuing factional holders pending payment.
Future scheduled principal payments on the long-term debt are as follows as of December 31, 2019:
The following is a summary of the methodology used to estimate the assets’ fair value measured on a recurring basis and within the above fair value hierarchy. The overall fair value methodology has been consistently applied; however, certain assumptions are revised as appropriate at each reporting period.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control over financial reporting. Accordingly, we express no such opinion.