UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) ~~September~~ 12February 17, ~~2013~~2014

VHGI HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	000-17520	75-2276137
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

103 North Court Street, Sullivan, IN	47822
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code 812-268-5459

not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 18.0301 Other ~~Bankruptcy or Receivership.~~Events

On September 2312, 2013 Lily Group, ~~due~~Inc., toa ~~the~~wholly-owned ~~failure~~subsidiary of ~~Hassan~~ ~~Alshaban~~VHGI ~~Principal and~~Holdings, AlInc., ~~Rami~~notified ~~PureAl~~a ~~Rami~~counterparty ~~Pure~~that ~~LLC~~it towas ~~perform~~terminating ~~under~~an ~~the terms of the agreed upon renegotiated terms of the~~ Equity Investment Agreement asbetween ~~described~~the ~~in Item 8~~parties.01 ~~of this report,~~ Lily Group, Inc., ais ~~wholly-owned~~unable ~~subsidiary~~to ofprovide ~~VHGI~~the ~~Holdings,~~full ~~Inc.,~~amount ~~filed~~of athe ~~voluntarily~~required ~~petition~~deposit ~~for~~monies ~~reorganization~~to ~~under~~close ~~Chapter 11 of~~ the ~~United~~transaction ~~States~~and ~~Bankruptcy~~is ~~Code~~unable into ~~Bankruptcy~~perform ~~Court~~under ~~for~~ the ~~Southern~~terms ~~District~~ of ~~Indiana,~~the ~~case number: 13-81073-FJO-11~~agreement. Lily Group, Inc. ~~remains~~is incurrently ~~possession~~attempting ~~of its assets and continues~~ to ~~operate~~retrieve ~~its~~deposited ~~business~~funds asplaced aon ~~debtor-in-possession~~deposit ~~under~~within the ~~jurisdiction~~UAE ofbanks ~~the~~associated ~~Bankruptcy Court and in accordance~~ with the ~~applicable~~anticipated ~~provisions~~closing of the ~~Bankruptcy~~transaction ~~Code~~although ~~and~~they ~~the~~are ~~orders~~continuing ofdiscussions ~~the~~going ~~Bankruptcy~~forward ~~Court~~with potential opportunities.

Item 21.0401 ~~Triggering~~Entry ~~Events~~into ~~That Accelerate or Increase~~ a ~~Direct~~Material ~~Financial~~Engagement ~~Obligation~~Agreement orto anFund ~~Obligation under an Off-Balance Sheet Arrangement.~~Projects

AsVHGI aHoldings, ~~result~~Inc. of (the ~~filing~~“Company”) ofis ~~the~~pursuing ~~Chapter~~other 11US ~~petition~~energy ~~described~~opportunities infor ~~Item 1~~acquisition.03 On ofFebruary ~~this report~~17, an2014 ~~event~~the ofCompany ~~default~~entered ~~has~~into ~~occurred~~an ~~pursuant~~engagement toagreement ~~the~~with ~~terms~~Street ~~of the $13~~Capital,~~000,000~~ ~~Note~~Inc. ~~Purchase~~for ~~Agreement~~certain ~~between~~financial ~~Lily~~advisory ~~Group Inc.~~ and ~~Platinum~~investment ~~Partners~~banking ~~Credit~~services ~~Opportunities~~to ~~Master~~the ~~Fund~~Company ~~LP.~~in ~~VHGI~~connection ~~Holdings,~~with ~~Inc.~~the isCompany’s ~~also~~review inof ~~default~~its ofstrategic ~~all~~and ~~outstanding~~financial ~~notes~~alternatives ~~and~~including, ~~obligations identified~~but innot ~~the~~limited ~~company’s~~to, ~~10k~~a ~~filed~~possible ~~June~~Transaction ~~26,~~or ~~2013~~Financing.

~~Item~~1. 8Services.01 ~~Other~~Street ~~Events.~~Capital agrees to perform the following services:

~~On September 12, 2013 Lily Group, Inc.,~~ (a) ~~wholly-owned~~Review ~~subsidiary~~historical ofand ~~VHGI~~projected ~~Holdings,~~financial ~~Inc.,~~and ~~notified~~operating Alinformation ~~Rami Pure LLC that it was terminating the Equity Investment Agreement between the parties as a result~~ of the ~~failure~~Company ~~of Hassan Alshaban Principal of Al Rami Pure~~ and Alany ~~Rami~~Strategic Pure LLC to perform under the terms of the agreement. Lily Group Inc. is attempting to close the final issue of the failed transaction by successfully retrieving the deposited funds placed on deposit within the UAE banks associated with this transaction.Partners;

(b) Assist the Company's management with the preparation of a memorandum (the Memorandum) describing the Company's business together with such other materials as may be reasonably required for marketing of the Company;

(c) Identify and seek out persons, groups of persons, partnerships, joint ventures, corporations or other entities (each, a Strategic Partner) who would be interested in entering into a Transaction or Financing with the Company;

(d) Advise and assist the Company as to the financial aspects and structure of any proposed Financing or Transaction and assist in negotiating the terms thereof;

(e) Perform such other services as the Company and Street shall mutually agree to in writing.

It is our goal to afford the shareholders extended options for growth opportunities. We continue to focus on the Energy Sector and negotiations are currently exchanging data for due diligence within 4 properties within the Coal Industry. The terms of the draws will be negotiated per draw down schedule and contingent upon successful due diligence.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	VHGI Holdings, Inc.
Date: September 24, 2013	By: /s/ Paul R. Risinger
Date: February 18, 2014	By: /s/ Paul R. Risinger
	Paul R. Risinger, Chief Executive Officer

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