23.4 C
New York
Sunday, July 3, 2022

GWG Holdings, Inc. (GWGH) Stock Plunged 18.77% Today, Here’s Why

GWG Holdings, Inc. (GWGH) stock plummeted 18.77% in the current-market trading session at the price of $2.25 after announcing its financial restructuring.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free.

Sponsored


GWG Holdings is a financial services company located in Dallas, Texas. GWGH stock, through its subsidiary, owns and operates a diverse pipeline of life insurance policies.

GWGH Announced Financial Restructuring

On 20th April 2022, GWGH announced filing voluntary Chapter 11 petitions in the Bankruptcy Court of the United States. The petition was filed as part of a company’s restructuring process intended to improve its liquidity and capacity to meet financial obligations while maximizing the stakeholder’s value. Mayer Brown LLP serves as restructuring counsel and PJT Partners LP is acting as its financial advisor.

GWGH also reported securing DIP Credit Deal to facilitate the financial restructuring. Meanwhile, the stock has filed a motion with the court to approve this financing. The DIP Credit Deal had designed as a term loan facility with a principal amount of US$65M and will be granted by National Founders LP. The proceeds from the agreement will be used for the company’s general corporate purposes, including permitted acquisitions and working capital, among others.

GWGH Business Outlook

The above measures, including the petition for additional financing, are anticipated to bolster the stock’s financial position. Moving onwards, GWGH stock will focus on maintaining the value of the company’s assets for the welfare of its investors. The company hopes to end the restructuring process as soon as possible to resume its everyday operations. The company is also filing a series of customary motions to maintain its regular business operations.

Conclusion

Following the restructuring, GWGH stock anticipates being on a better financial foundation for the future. The restructuring process will enhance its capacity to deliver better financial solutions to the clients and preserve the high value of its assets for investors. It will position the stock to pursue further opportunities in the insurance industry by employing its comprehensive industrial experience.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

[class^="wpforms-"]
[class^="wpforms-"]