GWG Bankruptcy Update (February 11, 2023):  GWG Proposes Liquidation in its Amended Reorganization Plan

**Update: March 14, 2023** In court filings on March 11, 2023, GWG notified the Bankruptcy Court that it would submit a Second Amended Reorganization Plan, which proposes the liquidation of GWG through the establishment of two liquidation trusts.  Read more at our latest blog post: GWG Bankruptcy Update (March 14, 2023): GWG Appears to be Headed Toward Liquidation

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GWG Bankruptcy Update (February 11, 2023):  GWG Proposes Liquidation in its Amended Reorganization Plan

On February 10, 2023, GWG submitted an Amended Reorganization Plan to the bankruptcy court that would lead GWG to cease all new business operations and establish a Wind Down Trust to liquidate its assets.

The Amended Reorganization Plan was filed as GWG, and other stakeholders are still engaged in a mediation with the Honorable David R. Jones, United States Bankruptcy Judge for the Southern District of Texas.  An in-person mediation was held in New York City on January 30, 2023, and January 31, 2023, but it remains ongoing.  GWG’s Amended Reorganization Plan may be subsequently amended to reflect any results of the mediation, however below is a high-level summary of the amended plan:

  • Under the Amended Reorganization Plan, GWG will no longer continue as a going concern.
  • Instead, GWG will cease all new business operations.
  • A Wind Down Trust will be established to monetize GWG’s assets.
  • GWG has two types of assets (i) portfolio of life insurance policies; (ii) passive non-controlling equity interest in The Beneficient Company Group, L.P. (“Ben LP” and, together with its subsidiaries, “Beneficient”) and FOXO Technologies, Inc. (“FOXO”).
  • A Wind Down Trustee will be appointed with the sole authority to make decisions and take action with respect to the Wind Down Trust, including how and when to monetize the equity interests in Beneficient and FOXO.
  • Bondholders will exchange their current L Bonds for New Series A Preferred Stock into the restructured GWG. The preferred stock should be freely transferable. The New Series A Preferred Stock shall be entitled to cumulative dividends from April 20, 2022, at the rate of 9% per annum. Pending Cash distributions, such dividends shall be payable in kind. The New Series A Preferred Stock shall be subject to mandatory redemption in five years and may be redeemed at any time without penalty at stated value, plus accrued dividends.
  • If the Amended Plan is not confirmed, GWG will likely enter Chapter 7 bankruptcy liquidation.
  • Beneficient, its current and former directors and officers (including, without limitation, Bradley K. Heppner, Thomas O. Hicks, Bruce W. Schnitzer, Dennis P. Lockhart, and Peter T. Cangany) do not get released.
  • The proposed voting deadline is April 14, 2023, at 4 p.m. CT.

One of the key remaining sticking points among the stakeholders appears to be a standing motion filed by the Official Committee of Bondholders of GWG Holdings Inc. (“Bondholder Committee”) seeking court approval to prosecute causes of action against certain current and/or former directors and officers of GWG Holdings, Inc., individuals, and corporate entities affiliated with or controlled by Brad Heppner, transferees of certain fraudulent transfers, and key broker-dealers who marketed and sold L Bonds.

To read more about the alleged misconduct, please visit our other blog posts:

Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

As GWG Holdings, Inc. continues to navigate the bankruptcy process, with many questions remaining for L bondholders, our law firm remains ready to help GWG L bond investors file meritorious arbitration claims to recover their losses against broker-dealers. We continue to help GWG L Bond investors recover their losses.

Iorio Altamirano LLP (, a law firm that represents retail investors, is representing many GWG L Bond investors against brokerage firms across the country to recover investment losses and damages sustained by those firms’ recommendations to invest in GWG L Bonds. Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct by many brokers and broker-dealers across the country.

For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, including a key event timeline, visit our firm’s investigation pageIorio Altamirano LLP’s Investigation of GWG L Bonds.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at or Jorge Altamirano at Alternatively, call the firm toll-free at (855) 430-4010.

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