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J.G. Wentworth Prepack Bankruptcy Filing

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J.G. Wentworth (f/k/a JGW Holdco) and four affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-12914 (Orchard Acquisition).

The Company, which provides financial solutions, is represented by Edmon L. Morton of Young Conaway Stargatt & Taylor. The Company concurrently filed a Joint Pre-Packaged Plan of Reorganization and related Disclosure Statement (dated December 1, 2017).

According to the Disclosure Statement, the Plan contemplates, among other things, the occurrence of the following: “On the Effective Date, all Existing Partnership Interests shall be cancelled, and, in exchange therefor, each Holder of such Equity Interests shall receive its pro rata share of the Partnership Consideration. As provided in Article III.C(vii) of the Plan, the Partnership Consideration shall be in the form of, as elected by each such holder, (i) Partnership Equity Consideration, which is a percentage amount of New Common Equity equal to up to 4.5% of the New Common Equity, (ii) Partnership Cash Consideration, which is an amount of cash equal to up to 4.5% of $145,000,000 or (iii) a combination of the Partnership Equity Consideration and the Partnership Cash Consideration.”

In addition, “On the Effective Date, all Existing PubCo Interests shall be cancelled, and Holders of Existing PubCo Interests shall receive no recovery under the Plan….The New Board shall consist of five (5) directors, which shall include the chief executive officer of Reorganized JGW and four (4) other directors selected by the Required Consenting Lenders.”

J.G. Wentworth emerged from a previous Chapter 11 filing in June 2009.

Read more Wentworth bankruptcy news.

The post J.G. Wentworth Prepack Bankruptcy Filing appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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