SSEK Law Firm Continues Investigation into GWG Holdings, GWG Should File for Chapter 11 Bankruptcy
Dallas-Based Alternative Assets Firm Expected to File for Bankruptcy Protection Very Soon
HOUSTON, April 12, 2022 /PRNewswire/ — Sources say GWG Holdings, Inc. (NASDAQ: GWGH) is preparing for Chapter 11 bankruptcy. The reports come after the Texasalternative asset company has notified the SEC in a April 12022 deposit that it was unable to submit its 2021 annual report and other financial statements because it has not yet engaged an auditor since Grant Thorton resigned from this position in December 2021.
Not having an auditor for that long can be a sign that a company is considering filing for bankruptcy protection.
GWG Holdings sold $1.6 billion in settlement-backed bonds through numerous independent brokers. In February 2022it is default on $13.6M in payments of principal plus the interest it owed to the investors of its L-link series. Visit our GWG Holdings, Inc. page for more company information and recent events.
GWG Holdings shares plunge
After The Wall Street Journal reported that GWG Holdings was set to file for bankruptcy, trading GWG shares on April 4, 2022fell more than 16% to $4.48/share. (Trading has also been paused and resumed a number of times.) April 11, 2022GWG shares were trading at $1.73/share.
Chapter 11 Bankruptcy would be bad news for L Bond investors
Investors in L bonds stand to suffer huge losses following the bankruptcy filing of GWG Holdings. Many of them are retirees, older investors, conservative investors and other retail investors whose financial advisers should never have marketed and sold these illiquid and risky high yield bonds. Many L-bond investors have invested their savings in these bonds.
Representing the L bond investors of GWG Holdings
Law firm SSEK represents L Bond investors in FINRA arbitration against their brokers, including Ni Advisors, Center Street Securities and others. Plaintiffs allege inadequacy, misrepresentations and omissions, negligence, lack of supervision and other breaches.
It is important that you hire your own experienced GWG L bond attorneys and submit an individual claim for financial recovery. The law firm SSEK went against the largest brokers in the country in an attempt to obtain damages for our clients and we recovered several million dollars.
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SOURCE Shepherd Smith Edwards & Kantas LLP