GWG Bankruptcy Update (March 14, 2023):  GWG Appears to be Headed Toward Liquidation

In court filings on March 11, 2023, GWG notified the Bankruptcy Court that it would submit a Second Amended Reorganization Plan after concluding a mediation with creditors and other stakeholders, including the Official Committee of Bondholders of GWG Holdings Inc. (“Bondholder Committee”). The latest plan, expected to be filed on or about March 14, 2023, proposes liquidation for GWG through the establishment of two liquidation trusts.  The plan will likely be put up for a vote by creditors in the coming months.

Below is a high-level summary of GWG’s Second Amended Reorganization Plan based on recent court filings:

  • Under the Second 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 take all necessary steps to wind down GWG’s business affairs and monetize GWG’s non-litigation assets.
  • GWG’s two primary non-litigation assets are its (i) portfolio of life insurance policies; and (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”).
  • GWG’s Chief Executive Officer and Chief Restricting Officer, Jeffrey S. Stein, or an affiliate of Mr. Stein, will be appointed as the Wind-Down Trustee.
  • The Wind-Down Trust will issue trust interests (Series A1, A2, B, C. D, and E) to all holders of claims and equity interests in GWG, including GWG L Bondholders. That is, Bondholders will exchange their current L Bonds for New Series A1Trust interests.
  • The term of the Wind-Down Trust will be three (3) years. The term may be extended by court approval for up to two( (2) additional years.
  • The second trust, the Litigation Trust, will hold all non-released litigation assets, as well as GG’s interest in any insurance policies covering directors and officers of GWG. The trustee of the Litigation Trust, which the Bondholder Committee will appoint, will have the discretion to prosecute or settle all such claims, with approval by the bankruptcy court in some circumstances. Any proceeds from the Litigation Trust will be distributed to the Wind Down Trust for further distribution to holders of the trust interests.
  • 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. However, GWG and creditors can still negotiate with Beneficient to reach a settlement. If a settlement is reached prior to the confirmation hearing, the bankruptcy court must approve the settlement.
  • GWG will not consent to the Beneficient SPAC transaction without court approval.
  • Broker-dealers and investment advisors who sold GWG L Bonds to retail investors may elect to receive a release from the debtors of any causes of action by the estate in exchange for paying the debtors cash in the amount equal to 30% of all value received by such electing broker-dealers from GWG for the sale of GWG L Bonds.   Any broker-dealer may opt-in to the broker-dealer settlement by submitting an election notice and making the requisite payment within 90 days following the Second Amended Plan’s effective date.

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.

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.

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.

Contact Information