GWG Holdings seeks fifth extension of exclusive solicitation period

By Sarah Lizee

Olympia, Wash., Feb. 14 – GWG Holdings, Inc. is seeking a fifth extension of its exclusive periods to solicit votes on a Chapter 11 plan through May 15, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company said it is approaching the culmination of what has been a challenging Chapter 11 plan process. An amended plan was filed on Feb. 10.

The amended plan seeks to maximize estate value by placing the debtors’ key assets – their interests in the policy portfolio, Beneficient, and FOXO – into a wind down trust where the value of such assets can be realized over time.

It also assigns the retained causes of action into a litigation trust so that the claims can be prosecuted or settled to deliver additional value to stakeholders.

The company is still hoping to reach a global resolution through mediation, however. If that happens, a new plan will be filed.

The company said the extension is necessary to allow the debtors to pursue solicitation and confirmation while preserving its ability to continue mediation.

GWG is a life insurance company based in Dallas. The company filed bankruptcy on April 20, 2022 under Chapter 11 case number 22-90032.

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