GWG Holdings Engages in Financial Restructuring

GWG Holdings, Inc., a Dallas, Texas-based financial services company, announced today that the Company and some of its subsidiaries have voluntarily filed Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas as part of a restructuring process designed to help the Company increase its liquidity and ability to meet its financial obligations while maximizing the value of its assets. GWG Life, LLC, and GWG Life USA, LLC, together with the Company, are the subsidiaries that are “Debtors” in the Chapter 11 Cases.

The Company also disclosed that, subject to court approval, it has acquired debtor-in-possession finance to support the restructuring and that it has filed a motion with the court asking for permission to do so. The National Founders LP will supply the DIP Credit Agreement, which is designed as a multiple draw term credit facility with an overall principal amount of about $65 million.

In accordance with the DIP Credit Agreement, the proceeds from all or a portion of the DIP Credit Agreement may be used for general corporate purposes, including working capital and permitted administrative costs, acquisitions, expenses, premiums, and fees of the transactions contemplated by Chapter 11 Cases, the payment of court-approved adequate protection obligations, and other similar purposes.

These actions, which include receiving more funding, are anticipated to improve the company’s financial condition going ahead and aid in maintaining the assets’ value for the benefit of its investors.

The Company intends to carry on with its regular business operations while proceeding with the restructuring as swiftly as possible.

The Company is submitting to the Court a number of typical motions in an effort to continue conducting business as usual. The Company anticipates receiving approval of these “first-day” motions soon, which will aid in a smooth start to the process.