TIPTREE INC. current report, 10 December 2009

Business Context and Reporting Period

This Form 8-K is filed by Care Investment Trust Inc. (not Tiptree Inc.) on December 11, 2009, reporting events occurring on December 10, 2009. The filing announces that the Board of Directors has adopted a Plan of Liquidation for the Company, which is subject to approval by stockholders holding a majority of outstanding common shares.

Key Financial Metrics

The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. The primary financial metric disclosed relates to the performance share awards tied to future cash distributions:

  • Target Distribution Threshold: $8.00 per share.
  • Minimum Distribution Threshold: $7.50 per share.
  • Performance Period: From stockholder approval of the liquidation plan through December 31, 2010.

Material Changes

The most significant material change is the strategic decision to liquidate the Company. Concurrently, the Board awarded performance shares to key executives contingent upon the liquidation plan's approval and the achievement of specific distribution targets:

  • Flint D. Besecker (Chairman): 5,000 share target award.
  • Salvatore V. Riso, Jr. (CEO): 5,000 share target award.
  • Paul F. Hughes (CFO/CCO): 3,000 share target award.
  • Michael P. McDugall (CIO): 1,000 share target award.

Award payouts range from 50% of the target (if distributions are <$7.50) to 200% of the target (if distributions are $\ge$ $8.00).

Outlook, Risks, and Contingencies

Outlook: The Company is in the process of seeking stockholder approval for liquidation. The timeline for consummating the liquidation is uncertain.

Risks and Contingencies: The filing includes a Safe Harbor Statement noting that forward-looking statements involve risks and uncertainties. Key risks include the ability to consummate the liquidation in a timely fashion, economic and funding market conditions, and regulatory factors. The Company disclaims any obligation to update these statements.

Investor Verification Checklist

  • Verify the outcome of the stockholder vote on the Plan of Liquidation.
  • Confirm the actual aggregate cash distributions declared per share to determine executive compensation payouts.
  • Review the Company's most recent Form 10-K and 10-Q for historical financial data not included in this 8-K.
  • Monitor for any updates regarding the timeline for the liquidation process.