GWG Holdings Undertakes Financial Restructuring And Files Voluntary Chapter 11 Petitions

Obtains Debtor-In-Possession Financing to Facilitate Restructuring

Expects Restructuring to Strengthen Financial Position and Enhance Value of its Assets

DALLAS, April 20, 2022 (GLOBE NEWSWIRE) -- GWG Holdings, Inc. (Nasdaq GWGH) (the “Company”), a financial services firm based in Dallas, Texas, today announced that the Company and certain of its subsidiaries have filed voluntary Chapter 11 petitions (the “Chapter 11 Cases”) in the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) 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, LLC (together with the Company, the “Debtors”).

The Company also announced that it has secured debtor-in-possession financing (the “DIP Credit Agreement”) 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.

“These steps, including the receipt of additional financing, are expected to strengthen the Company’s financial position going forward and help preserve the value of the Company’s assets for the benefit of its investors,” said Murray T. Holland, Chairman, President and Chief Executive Officer of the Company.

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.

“At the end of this process, we expect to be on stronger financial footing for the future, further enhancing our ability to provide financial solutions to our customers, preserving and enhancing the value of our assets for our investors, and positioning us to pursue additional business opportunities in the insurance space utilizing our extensive experience in the life insurance industry,” Holland concluded.