Gwg holdings news is reportedly preparing to file for bankruptcy to address the $2 billion in combined interest and principal payments owed by investors in the L Bond series. The alternative asset manager marketed these bonds through a network of brokerage firms, which then sold them to retail investors. The bonds are tied to life insurance policies and only pay on death of the original policy holder. If the company does file for Chapter 11, it will likely default on these debts and leave investors without their principal or interest.
Who buys 100 year bonds?
The trouble began in 2020, when the company missed a filing deadline for its annual report. This was followed by a string of other missed deadlines, including quarterly filings and the submission of an audited financial statement. In 2021, the company’s independent registered public accounting firm resigned. GWG has been unable to file an audited report since then and may be facing an SEC investigation.
In 2022, the company reported that it had received a notice from Nasdaq stating that the company had failed to meet certain requirements and was in danger of being delisted from the exchange. The company also announced that it had entered into a voluntary bankruptcy process, which it stated would provide an opportunity for a complete restructuring of the business and repayment of debts.
Investors who lost money in GWG L bonds should contact a securities attorney right away. Brokerage firms that recommended this high-risk investment to their clients may be liable for negligence, breach of fiduciary duty, misrepresentation, failure to perform due diligence, and other claims.