A company that buys structured settlements and annuities is trying to restructure its own finances.
J.G. Wentworth, Bryn Mawr, Pa., says three “non-operating parent holding company level affiliates — JGW Holdco L.L.C., J.G. Wentworth L.L.C. and J.G. Wentworth Inc.” have filed a voluntary, prepackaged reorganization plan with the bankruptcy court in Delaware.
J.G. Wentworth, a company that once tried to enter the life settlements market, already has persuaded 90% of its term lenders to accept the reorganization plan, and “they are the only creditors impacted by the plan,” the company says. “The plan will allow the company to substantially reduce its debt load at the parent company level while providing the enterprise with $100 million of new equity to support ongoing operations.”
J.G. Wentworth is seeking bankruptcy court protection to cope with the effects of disruption in the asset-backed securities market, the company says.
The reorganization process should be completed in about 30 days, and it should not have any effect on employees, vendors or customers, J.G. Wentworth says.