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GWG L Bond Investor Update: GWG Holdings, Inc. Officially Defaults on Its Obligations to L Bond Investors – February 14, 2022
**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 our law firm for a free and confidential consultation and to review their legal rights.
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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.
Our New York securities arbitration law firm continues to evaluate potential claims for L Bond owners.
Investors who purchased the L Bonds offered by GWG Holdings are encouraged to contact Iorio Law PLLC for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.
For the latest on Iorio Law PLLC’s investigation of GWG L Bonds, visit our firm’s investigation page: Iorio Law PLLC’s 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 not to 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 Law PLLC, a leading securities arbitration law firm, to review their legal rights. Our firm 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.
About Iorio Law PLLC
Iorio Law PLLC 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 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 800 cases. The 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.
This blog was published by August Iorio when he was a Partner at his previous firm and has been updated to reflect Iorio Law PLLC’s new contact information. To evaluate any potential claims, contact securities arbitration lawyer August Iorio for a free consultation contact Iorio Law PLLC at info@iorio.law or (646) 330-4624.