GWG Holdings Inc., the bankrupt financial services firm and sponsor of non-traded direct investment offerings, announced that its reorganization plan has been confirmed by the bankruptcy court. As a result, all securities issued by the company, including common stock, preferred stock and debt securities (including all L bonds) were cancelled.
GWG says holders of such cancelled securities were delivered interests (“New WDT Interests”) in GWG Wind Down Trust, a Texas law governed liquidating trust created pursuant to the plan.
As previously reported, in April 2022, GWG Holdings filed bankruptcy under chapter 11 of title 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas.
The firm previously indicated in its bankruptcy filings that an ongoing SEC investigation, particularly its focus on how bonds were sold by brokers, impacted its ability to raise capital.
The company also intends to file a Form 15 with the SEC to provide notice of the suspension of its reporting obligations under SEC rules. Upon filing a Form 15, GWG will immediately cease filing any further periodic reports under the Exchange Act.
GWG Holdings is a financial services firm based in Dallas, Texas. Through its subsidiary, GWG Life, LLC, GWGH owns and manages a portfolio of life insurance policies that, as of September 30, 2021, included $1.8 billion in face value of life insurance policy benefits.