Opinion ID: 4527348
Heading Depth: 3
Heading Rank: 3

Heading: The Acheron Agreement

Text: In late 2014, a dispute arose over whether Acheron, as a third-party purchaser of interests from the Trustee, was entitled to the same status and protections as investors who are beneficiaries of the Trust. This led Acheron and the Trust to negotiate an agreement (the “Acheron Agreement”), which the district court approved simultaneously with the Servicing Agreement renewal. In relevant part, the Acheron Agreement provides: “Upon termination of the Renewal Agreement, the Trustee shall not negotiate a new servicing agreement or further extension of any existing Servicing Agreement without giving Acheron the right to participate actively in any negotiations that involve the servicing of any policies in which Acheron has an interest . . . .” Acheron also has the right to “refuse to approve any new servicing agreement or further extension of the Renewal Agreement which is not on commercially reasonable terms.” If the Trustee and Acheron cannot agree on the terms of “a new servicing agreement or further extension of the existing Servicing Agreement,” the parties are obligated to submit the dispute to mediation. 5 Case: 19-11447 Date Filed: 04/21/2020 Page: 6 of 12