GWG Holdings files voluntary Chapter 11 petitions in Bankruptcy Court

GWG Holdings announced that the Company and certain of its subsidiaries have filed voluntary Chapter 11 petitions (in the U.S. Bankruptcy Court for the Southern District of Texas as part of a restructuring process intended to enable the Company to enhance its liquidity and ability to meet its financial obligations, while maximizing the value of its assets. The subsidiaries that are debtors in the Chapter 11 Cases are GWG Life, LLC and GWG Life USA. The Company also announced that it has secured debtor-in-possession financing to facilitate the restructuring, subject to Court approval, and that it has filed a motion with the Court for approval of this financing. The DIP Credit Agreement is structured as a multiple draw term loan facility in an aggregate principal amount of approximately $65 million and will be provided by National Founders LP. The proceeds of all or a portion of the DIP Credit Agreement may be used for, among other things, general corporate purposes, including working capital and permitted acquisitions, administrative costs, premiums, expenses and fees of the transactions contemplated by the Chapter 11 Cases, for payment of court approved adequate protection obligations and other such purposes consistent with the DIP Credit Agreement. While it moves as quickly as possible through the restructuring process, the Company intends to continue its day-to-day operations as debtor-in-possession. The Company is filing with the Court a series of customary motions seeking to maintain business-as-usual operations. Approval of these "first day" motions, which the Company expects to receive in short order, will help facilitate a smooth transition into the process.