Investors holding GWL bonds need to seek immediate legal representation as time limits apply for filing claims. Broker dealers and financial advisors may be liable for investors’ losses due to their failure to disclose that the bonds involves significant risks.
A Deep Dive into GWG Wind Down Trust’s Assets
Portfolio of Life Insurance Policies
Latest Move: The Bankruptcy Court greenlit the sale of this portfolio on October 3, 2023, raking in a total of $10 million.
What It Means for L Bondholders: Expectations suggest they might pocket between $0 and $7 million in total. To put it in perspective, that’s merely 0.5% of the hefty $1.3 billion they’re owed.
Projected Recovery: 0 – 0.5%
FOXO Holdings – 4.6 Million Shares
Stock Status: FOXO’s stocks hover around $0.12 per share as of October 6, 2023.
Insider Insight: On October 3, Ms. Freeman dropped a bombshell. FOXO’s stocks might not be that lucrative after all. The company isn’t flourishing and is even pondering bankruptcy.
Projected Recovery: A nearly negligible 0 – 0.00001%
Stake in Beneficient – 169.7 Million Shares
Stock Update: Trading at approximately $1.29 per share as of October 6, 2023.
Financial Health: Beneficient is on shaky ground. Q2 2023 saw them incurring a staggering $1.15 billion loss.
Their cash reserves? A mere $4.4 million by July 31, 2023. Tough times have forced them to consider furloughs and layoffs.
Excluding goodwill, their net assets stood at $260 million as of June 30, 2023.
Legal Woes: The SEC has its eye on Beneficient. By June 29, 2023, they served a “Wells Notice,” hinting at potential legal battles tied to their association with GWG Holdings. Moreover, Beneficient’s top brass, including their CEO Brad Heppner, are also under the scanner.
Sell-off Challenges: Mr. Freeman highlighted the hurdles in offloading these shares. Given the low trading volume, finding a market for a massive 169.7 million shares seems ambitious.
Projected Recovery: Nominal at best.
Litigation Proceeds
Current Scenario: Michael Goldberg, the Litigation Trustee, will chase the “Retained Causes of Action” independent of the GWG Wind Down Trust. Any proceeds from these legal pursuits will solely fund the distributions under the confirmed Plan. However, diverting these funds for other purposes requires a nod from the Bankruptcy Court or the Litigation Trustee’s written consent.
Projected Recovery: It’s a toss-up!
Not looking good at all
The latest on GWG, still zero hope on any recovery
Beneficient stock is at $1.10 today, how are they going to pay back the funds received by GWG.
Still no payments but we all know there won't be any.
Maybe Michael will be the next one arrested seeing how he lost over $6 million in Villagers money.
|