Annuity, life insurance policy purchaser J.G. Wentworth files for bankruptcy - Philadelphia Business Journal:

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The Bryn Mawr, Pa.-based companh filed for bankruptcy inthe U. S. Bankruptcy Courtf in Delaware. The company sought acceptance of its plan from its lendersd before what is calle aprepackaged filing. More than 90 percentt of the termlenders approved, the company said. J.G. Wentwortnh said the plan will allow it to substantiallyt reduce its debt load while providing the enterprisewith $100 millio n of new equity to supporty ongoing operations. Its operating units will continu to conduct business without interruption duringb thereorganization process, which is expected to be completer within roughly 30 days.
The company said it also securedx a commitmentfor debtor-in-possession financing to supplement its workingv capital and provide adequate liquidity durin the proceedings. J.G. Wentworthu said its decision to file for Chapter 11 came after an extensiv review of alternatives to address pressuresfrom “extremelyy challenging capital markets and high borrowing costs”, and was unanimously approvec by the company’s board of directors. “We have recentluy faced significant challenges due tothe well-publishede disruption of the [asset-backed securities] market,” J.G. Wentworth CEO Davic Miller said. The company said customers completing a transactionwith J.G.
Wentworthn will not be affected bythe filing, neither will vendorz and employees. In December, J.G. Wentworthu laid off 120 of its 200 employees and closed its LasVegas office. Murray said at the time that the firm has felt the stingf ofthe “inefficient securitization market and the increas e in the cost of funds.” J.G. Wentworth, foundesd in 1991, is owned by New York-based privatwe equity firm JLL Partners and moved from Philadelphiaq to Bryn Mawrin 2003.