**Update: April 20, 2022** GWG Holdings, Inc. has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas. As a result of the bankruptcy filing, all accrued principal and interest payment obligations owed to GWG L Bond investors have been halted as the case proceeds through bankruptcy court. Chapter 11 Bankruptcy cases can take anywhere from 17 months to five years for larger and more complex cases. GWG L Bond investors are encouraged to immediately contact law firm Iorio Altamirano LLP for a free and confidential consultation and to review their legal rights.
GWG L Bond Investor Update: GWG Holdings, Inc. Officially Defaults on Its Obligations to L Bond Investors – February 14, 2022
After missing interest and principal payments to L Bond investors on January 15, 2022, GWG Holdings, Inc. had a 30-day grace period to make the interest and maturity payments before it was officially in an event of default pursuant to the issuing documents for the L Bonds. The 30-day window for GWG Holdings to cure its deficiencies and meet its financial obligations to L Bond owners has now passed, and GWG Holdings is officially in an event of default.
On February 14, 2022, GWG Holdings, Inc. confirmed in a letter to investors that it will not make monthly interest and maturity payments on its L Bonds, or dividend payments to preferred stockholders. In addition, GWG holdings has confirmed that it will continue to defer requests for redemptions.
As a result of GWG Holdings, Inc.’s default, L Bond owners are left holding securities that cannot be sold or redeemed, and no longer paying their promised income.
New York securities arbitration law firm Iorio Altamirano LLP continues to evaluate potential claims for L Bond owners.
Investors who purchased the L Bonds offered by GWG Holdings are encouraged to contact Iorio Altamirano LLP for a free and confidential consultation. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.
For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, visit our firm’s investigation page: Iorio Altamirano LLP’ Investigation of GWG L Bonds
GWG’s February 14, 2022 Letter to Investors
On February 14, 2022, GWG Holdings sent a notice to investors that the company would not make monthly interest and maturity payments on its L Bonds or dividend payments to preferred stockholders while the company continues to identify and evaluate restructuring alternatives with its advisors.
The company, which also disclosed that it would continue to not honor redemption requests at this time, stated that the process of identifying and considering various alternatives would take at least another three to four weeks and may take longer.
How to Recover Losses or Obtain a Free Consultation
In light of this most recent development, L bond investors are encouraged to contact Iorio Altamirano LLP, a leading securities arbitration law firm, to review their legal rights. Iorio Altamirano LLP is representing numerous GWG L bond investors in filing securities arbitration claims against firms such as Emerson Equity LLC and Centaurus Financial, Inc. for sales practice violations connected to the solicitation and sale of GWG L Bonds.
The L Bonds are speculative, high-risk, and illiquid private placement offerings. They were likely not suitable for investors with liquidity needs, low to medium risk tolerances, or senior or elderly investors.
If you or a loved one has invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at email@example.com or Jorge Altamirano at firstname.lastname@example.org. Alternatively, you may call the firm toll-free at Alternatively, you may call the firm toll-free at (855) 430-4010.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.