GWG Holdings: Mediator appointed to oversee plan discussions

By Sarah Lizee

Olympia, Wash., Jan. 6 – GWG Holdings, Inc.’s upcoming mediation will be led by judge David. R. Jones, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As reported last month, the court ordered the company and a special committee of its board of directors to mediate with key stakeholders regarding open issues relating to its Chapter 11 plan.

The debtors and special committee said the cases are “ripe for mediation” as a non-binding, cost-effective means of potentially resolving, or at least narrowing, open issues among themselves and key parties.

The official committee of bondholders also expressed support for the mediation process.

The committee said there are several issues that need to be addressed, including whether any legitimate basis exists, based on the projected value of the debtors on the effective date, for providing recoveries to creditors other than bondholders, let alone equity holders, other than recoveries to which general unsecured creditors may be entitled on account of the pursuit of any unencumbered estate claims and causes of action.

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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