GWG Holdings files for bankruptcy

GWG Holdings files for bankruptcy
The market has been anticipating the move for more than two weeks; the company has struggled of late and repeatedly missed the deadline to file audited financial statements in the past couple of years.
APR 20, 2022

As expected, GWG Holdings Inc., which sold $1.6 billion in bonds backed by life settlements through a network of independent broker-dealers, said it has voluntarily filed for Chapter 11 bankruptcy protection.

The company made the announcement Wednesday morning on its website. The market has been anticipating the measure for more than two weeks; the company has struggled of late and repeatedly missed the deadline to file audited financial statements in the past couple of years.

In January, it failed to make $13.6 million in combined interest and principal payments for its L Bonds series, ultimately defaulting on those bonds.

Investors in the $1.6 billion of bonds could face dire consequences from the GWG bankruptcy; one GWG investor, who asked not to be named, earlier this month said he estimated the L Bonds are worth 20 cents to 30 cents on the dollar.

In its statement, GWG Holdings said that it had secured $65 million in debtor-in-possession financing to facilitate the restructuring, subject to court approval. Its filing was made in U.S. Bankruptcy Court for the Southern District of Texas.

This story is developing.

Latest News

Judge accused of bias in discrimination case by ex-life insurance employee
Judge accused of bias in discrimination case by ex-life insurance employee

My employer was biased – and the judge and magistrate are being unfair says ex-employee

Best yet to come for ETFs as investors navigate global uncertainty: BBH
Best yet to come for ETFs as investors navigate global uncertainty: BBH

Global survey reveals tailwinds for active ETFs and alternative strategies, plus a turning point in cost-conscious investing.

Nominations for the first-ever 5-Star RIA Firms 2025 now open
Nominations for the first-ever 5-Star RIA Firms 2025 now open

InvestmentNews begins its inaugural search for the top wealth managers in the industry.

Finra hits RIA buyer NewEdge with $1 million penalty over Muni bond trades
Finra hits RIA buyer NewEdge with $1 million penalty over Muni bond trades

The market for municipal bonds is notorious for being opaque and filled with difficult to price securities.

Why these RIA firms are sitting out the M&A trend
Why these RIA firms are sitting out the M&A trend

Leaders at Five Eleven Partners and Johnson Investment Counsel speak out on the costs of consolidation, the pros and cons of PE, and how they're planning ahead for clients and advisors.

SPONSORED Beyond the all-in-one: Why specialization is key in wealth tech

In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies