Dallas-Based Alternative Asset Firm Expected to Seek Bankruptcy Protection Very Soon 

HOUSTON, April 12, 2022 /PRNewswire/ -- According to sources, GWG Holdings, Inc. (NASDAQ: GWGH ) is preparing for Chapter 11 bankruptcy. The reports come after the Texas-based alternative asset firm notified the SEC in an April 1, 2022 filing that it was not able to submit its 2021 yearly report and other financial statements because it has yet to retain an auditor since Grant Thornton stepped down from that role in December 2021. 

Shepherd Smith Edwards & Kantas LLP. (PRNewsFoto/Shepherd Smith Edwards & Kantas LLP)

Not having an auditor for this long can be a sign that a company is planning to seek bankruptcy protection.

GWG Holdings sold $1.6B in life settlement-backed bonds through many independent broker-dealers. In February 2022, it defaulted on $13.6M in principal payments plus interest that it owed investors of its L Bond series. Visit our GWG Holdings, Inc. page for more information about the company and recent events.  

 GWG Holdings L Bond .

GWG Holdings Shares Plunge

After The Wall Street Journal reported that GWG Holdings was getting ready to file for bankruptcy, trading in GWG shares on April 4, 2022, had dropped over 16% to $4.48/share. (Trading also was suspended and resumed a number of times.) On April 11, 2022, GWG shares were trading at $1.73/share.  

Chapter 11 Bankruptcy Would Be Bad News for L Bond investors

L Bond investors are likely to suffer huge losses in the wake of a GWG Holdings bankruptcy filing. Many of them are retirees, older investors, conservative investors, and other retail investors whose financial advisors should never have marketed and sold them these illiquid, risky high-yield bonds. Many L bond investors placed their life savings in these bonds. 

More About L Bonds 

Representing GWG Holdings L Bond Investors

SSEK Law Firm is representing L Bond investors in FINRA arbitration against their broker-dealers, including Ni Advisors, Center Street Securities, and others. Claimants are alleging unsuitability, misrepresentations and omissions, negligence, failure to supervise and other violations. 

It is important that you hire your own seasoned GWG L bond attorneys and submit an individual claim for financial recovery. SSEK Law Firm has gone up against the biggest broker-dealers in the country in pursuit of damages for our clients and we have recovered many millions of dollars. 

Contact:
Kirk Smith
ksmith@sseklaw.com
US Toll Free: (800) 259-9010

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SOURCE Shepherd Smith Edwards & Kantas LLP

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