GWG Expects Restructuring to Strengthen Financial Position and Increase Value of Assets – Form 8-K

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Expects restructuring to strengthen its financial position and increase the value of its assets

Dallas, Texas – April 20, 2022 – GWG Holdings, Inc. (Nasdaq GWGH) (the “Company”), a Dallas, Texas-based financial services company, today announced that the Company and certain of its subsidiaries have filed voluntary petitions under Chapter 11 (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of Texas (the “Court”) in connection with a restructuring process intended to enable the Company to improve its liquidity and ability to meet its financial obligations, while maximizing the value of its assets. The subsidiaries that are debtors in 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 obtained debtor-in-possession financing (the “DIP Credit Agreement”) to facilitate the restructuring, subject to court approval, and has filed a petition with the court for approval of this funding. The DIP Credit Agreement is structured as a multi-draw term loan facility in an aggregate principal amount of approximately $65 million and will be provided by National Founders LP. Proceeds from all or part of the DIP Credit Agreement may be used for, among other things, general corporate purposes, including working capital and permitted acquisitions, administrative expenses, bonuses, expenses and fees for transactions contemplated by Chapter 11 cases, for payment of adequate court-approved protection obligations, and for other purposes consistent with the DIP Credit Agreement.

“These actions, including the receipt of additional financing, should 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 of the Board, President and Chief Executive Officer. Company officer.

While advancing as quickly as possible through the restructuring process, the Company intends to continue its day-to-day operations as a debtor in possession.

The Company is filing a series of customary motions with the Court seeking to maintain the status quo. Approval of these “day one” motions, which the Company expects to receive shortly, will facilitate a smooth transition into the process.

“At the end of this process, we expect to be on a stronger financial footing for the future, to further improve our ability to provide financial solutions to our customers, to preserve and enhance the value of our assets. for our investors and to position us to pursue other insurance business opportunities through our extensive experience in the life insurance industry,” concluded Holland.

Further information

Court records and information about Chapter 11 cases are available on a website maintained by the company’s claims agent, Donlin Recano & Company, on their website at https://www.donlinrecano.com/gwg, or by calling 1 (888) 508-2507 (toll free) or emailing gwginfo@donlinrecano.com.

Mayer Brown LLP is acting as restructuring advisor, PJT Partners LP is acting as financial advisor and FTI Consulting, Inc. is acting as restructuring advisor to the Company.

About GWG Holdings, Inc.

GWG Holdings, Inc. (Nasdaq: GWGH) is a financial services company based in Dallas, Texas.

Through GWGH’s subsidiary, GWG Life, LLC, GWGH owns and manages a diversified portfolio of life insurance policies which, as of September 30, 2021, included $1.8 billion in face value of life insurance benefits. life insurance.

For more information about GWG Holdings, email info@gwgh.com or visit www.gwgh.com.

Forward-looking statements

This press release contains “forward-looking statements” relating to future events. Forward-looking statements contain words such as “expect”, “anticipate”, “could”, “should”, “intend”, “plan”, “believe”, “seek”, “see” , “may”, “will”, “would”, or “target”. Forward-looking statements are based on management’s current expectations, beliefs, assumptions and estimates and may include, for example, statements regarding Chapter 11 events, the ability of debtors to implement and complete a plan of reorganization and their ability to continue to operate in the normal course while the Chapter 11 cases are pending. These statements are subject to important risks, uncertainties and assumptions which are difficult to predict and which could cause actual results to differ materially and adversely from those expressed or implied by the forward-looking statements, including the risks and uncertainties regarding the debtors’ ability to successfully complete a Chapter 11 restructuring, including: the completion of a plan of reorganization; the potential adverse effects of Chapter 11 cases on the Company’s liquidity and results of operations; the ability of debtors to obtain timely approval by the bankruptcy court with respect to petitions filed in Chapter 11 cases; objections to any plan of reorganization or other filings that may prolong Chapter 11 cases; employee attrition and the company’s ability to retain senior management and other key personnel due to distractions and uncertainties resulting from Chapter 11 cases; the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties and regulatory authorities following Chapter 11 cases; the effects of Chapter 11 cases on the company and on the interests of various constituents, including holders of the company’s common stock; bankruptcy court decisions in Chapter 11 cases, including approvals of the terms and conditions of any plan of reorganization and the DIP credit agreement; the outcome of Chapter 11 cases generally; the length of time the Company will operate under Chapter 11 protection and the availability of operating capital during the term of Chapter 11 business; risks associated with third-party claims in Chapter 11 cases, which may interfere with the company’s ability to complete a plan of reorganization or alternative restructuring; increased administrative and legal costs associated with the Chapter 11 process; potential delays in the Chapter 11 process due to the effects of the COVID-19 virus; and other litigation and risks inherent in a bankruptcy process.

Forward-looking statements are also subject to the risk factors and cautionary statements described from time to time in the company’s filings with the United States Securities and Exchange Commission, including those in the company’s most recent Annual Report on Form 10. -K and any update. about it in the company’s quarterly reports on Form 10-Q and current reports on Form 8-K. These risks and uncertainties may cause actual future results to differ materially from those expressed in these forward-looking statements. The Company is under no obligation to update or revise these forward-looking statements and does not undertake to do so, except as required by law.

Media Contact:

Dan Callahan
Communications Director
GWG Holdings, Inc.
(612) 787-5744
dcallahan@gwgh.com


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