Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

J.G. Wentworth Disclosure Statement Approved, Plan Confirmed

The U.S. Bankruptcy Court approved J.G. Wentworth's Disclosure Statement and concurrently confirmed the Company's Joint Prepackaged Chapter 11 Plan of Reorganization, under which all term loan claims shall be terminated in exchange for a share of cash equal to the lesser of (1) $45 million and (2) the dollar amount needed to maintain Company liquidity. In addition, term lenders receive 95.5% of new common equity in reorganized J.G. Wentworth via new class A common stock. According to documents filed with the Court, "The Debtors, the Reorganized Debtors and any other Entity shall retain all defenses, counterclaims, rights to setoff, and rights to recoupment, if any, as to Unimpaired Claims….Each holder of New Class A Common Stock and New Class B Common Stock shall be deemed to be a party to and bound to the terms of the Stockholders Agreement and each holder of the New Partnership Interests shall be deemed to be a party to and bound to the terms of the New Partnership Operating Agreement, as applicable, from and after the Effective Date even if not a signatory thereto." This financing solutions provider filed for Chapter 11 protection on December 12, 2017, listing $5 billion in pre-petition assets. Visit BankruptcyData for a detailed Plan Summary.

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