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.
MyVest and Vestmark have also unveiled strategic partnerships aimed at helping advisors and RIAs bring personalization to more clients.
Wealth management unit sees inflows of $23 billion.
Deal will give US investment bank a foothold in lucrative European market.
New report examines the impact that the initiative has had on philanthropy.
Few feel confident that they will meet their retirement goals.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
