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GWG’s Board Suspended by Bankruptcy Court

The United States Bankruptcy Court for the Southern District of Texas, Houston Division, issued an order suspending the company’s board of directors pending the outcome of a hearing scheduled for Dec. 1, 2022.

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GWG Holdings Inc., the bankrupt financial services firm and sponsor of non-traded direct investment offerings, had its board of directors suspended by the United States Bankruptcy Court for the Southern District of Texas, Houston Division, pending the outcome of a hearing scheduled for Dec. 1, 2022.

The order from the bankruptcy court requires that, except for certain ordinary course transactions, the prior written approval of Jeffrey Stein, the company’s president, chief executive officer and chief restructuring officer, be obtained in connection with any monetary or non-monetary transfer by the company.

GWG announced the resignation of their CEO and CFO last week and the appoint of Stein as chief executive officer, in addition to his duties a chief restructuring officer.

Over the past 12 months, shares of the bankrupt company have fallen from $10.55 to $1.03, as of last week.

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.

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