fbpx
LOST MONEY IN GWG L BONDS? CLICK HERE TO LEARN MORE

GWG Bankruptcy Prepares for Creditor’s Committee Meeting as L Bond Losses Loom

May 4, 2022

GWG Bankruptcy Proceeds as GWG L Bond Investors Face Losses

National investment fraud lawyers KlaymanToskes is continuing to investigate full-service brokerage firms that sold GWG L Bonds as the Chapter 11 bankruptcy continues in Texas federal court.

The GWG Bankruptcy 341(a) Creditor’s Meeting is Set for May 2022

On April 28, 2022, the Court entered an Order in the GWG Holdings Bankruptcy matter (Case 22-90032) that the creditor’s meeting is set for May 25, 2022.

What is a Creditors’ Committee?

In Chapter 11 cases, the creditor’s committee is appointed by the U.S. Trustee, which is responsible for monitoring the debtor in possession’s operation of the business and the submission of operating reports and fees. Typically, the creditor’s committee consists of unsecured creditors who hold the seven largest unsecured claims against the debtor.

The duties of a creditor’s committee include

  • Consulting with the debtor in possession of administration of the case
  • Investigating the debtor’s conduct and operation of the business
  • Participating in formulating a plan.

Further, with the Court’s approval, a creditors’ committee may hire an attorney or other professionals to assist in the performance of the committee’s duties.

Recover GWG L Bond Losses

GWG L Bond attorneys KlaymanToskes are currently representing investors who suffered losses in GWG L bonds due to recommendations from their full-service brokerage firms. Investors with losses from GWG L Bonds are encouraged to contact Lawrence L. Klayman, Esq. at +1 (888) 997-9956.

What Powers Does the U.S. Trustee Have in the GWG Bankruptcy?

U.S. trustee mandates requirements on the debtor (in this case, GWG) in possession concerning matters such as reporting its monthly income and operating expenses, establishing new bank accounts, and paying current employee withholding and other taxes.

In Chapter 11 cases, the debtor in possession is required to pay a quarterly fee to the U.S. trustee for each quarter of a year until the case is converted or dismissed. If a debtor in possession fails to comply with the reporting requirements or does not take the necessary steps to bring the case to confirmation, the U.S. trustee could file a motion with the court to have the Debtor’s chapter 11 case converted to another chapter of the Bankruptcy Code or to have the case dismissed.

When is the Creditor’s Committee Meeting in the GWG Bankruptcy?

According to recent court filings, the Creditor’s Committee in the GWG Bankruptcy Matter in the Southern District of Texas is meeting on May 25, 2022 at 2:00 p.m. Mailings giving notice about the Creditor’s Meeting were sent in late April 2022.

Why Did GWG File for Bankruptcy?

On April 20, 2022, GWG Holdings, Inc. and its affiliates, GWG Life, LLC, and GWG Life USA, LLC, filed for Chapter 11 bankruptcy in the Texas Southern Bankruptcy Court. In its court filings, GWG Holdings stated that there are over 25,000 creditors, and its liabilities are between $1,000,000,001 and $10,000,000,000. Further, GWG reported total debts exceeding $2 billion.

GWG’s bankruptcy follows recent news reporting and company disclosures about the firm’s financial troubles. For instance, on April 4, 2022, the Wall Street Journal reported that GWG previously sought rescue financing that would have enabled it to restructure its balance sheet out of court, but recently shifted to pursuing a loan to finance a chapter 11 proceeding.

GWG Holdings’ bankruptcy follows the company’s recent defaults on interest and principal payments, its disclosure about its inability to file an Annual Report on Form 10-K within the prescribed time period, and an ongoing SEC investigation.

Lost Money Investing in GWG L Bonds?

GWG L Bond attorneys KlaymanToskes are currently representing investors who suffered losses in GWG L bonds due to recommendations from their full-service brokerage firms. Investors with losses from GWG L Bonds are encouraged to contact Lawrence L. Klayman, Esq. at +1 (888) 997-9956.

Recover Your GWG L Bonds Investment Losses

KlaymanToskes is a leading national securities law firm practicing exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact GWG L Bonds Lawyers

KlaymanToskes

Lawrence L. Klayman, Esq.

lklayman@klaymantoskes.com

www.klaymantoskes.com