Despite Misgivings, Court Approves $10M Financing for Troubled GWG Holdings
One day after GWG Holdings filed for Chapter 11 bankruptcy protection, Judge Marvin Isgur of the US Bankruptcy Court in Houston approved $10M in financing for the asset manager despite his concerns regarding the mechanics of the loan. The emergency loan will come from National Founders LP.
According to The Wall Street Journal (WSJ), in court papers, GWG said it needed the money to avoid “imminent liquidation.” The Texas-based alternative asset firm owes about $1.6B in L Bonds. Despite being illiquid and high-risk, these high-yield bonds were mainly marketed to individual investors by around 145 regional brokerage firms, including managing broker-dealer Emerson Equity. They earned high commissions of around 8% from the transactions.
The post At Least 27,000 L Bond Investors Left At a Loss Following GWG Holdings’ Bankruptcy Filing appeared first on Investor Lawyers Blog.
from Texas Bar Today https://ift.tt/elEndQG
via Abogado Aly Website
No comments:
Post a Comment