GWG Obtains Debtor-In-Possession Loan

Posted on January 4th, 2023 at 2:08 PM
GWG Obtains Debtor-In-Possession Loan

GWG Holdings has obtained a super-priority secured debtor-in possession loan and guaranty agreement to receive money to fund the company’s operations amidst bankruptcy proceedings, according to a filing with the Securities and Exchange Commission (SEC).

GWG has undergone substantial changes this year as numerous executives have resigned from the company after GWG filed for bankruptcy. In fact, the GWG board of directors recently appointed Michael Tucker to serve as the new chief financial officer of the c

ompany. The guaranty agreement provides for a revolving credit line in an aggregate principal amount of nearly $40 million as well as a term loan credit facility of almost $564 million.
Furthermore, the obligors, administrative agent and collateral agent also entered into a debtor-in-possession security agreement related to the DIP Credit Agreement. The DIP Credit Agreement matures on October 15, 2023, while borrowings under the agreement bear interest at 9.22% per annum.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

From the Desk of Jim Eccleston at Eccleston Law.

Tags: eccleston, eccleston law, advisors, law, sec, gwg holdings

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