Pursuant to the Order entered by the Bankruptcy Court on August 29, 2022 (the "Bondholder Bar Date Order"), certain holders of L Bonds must file proofs of claim no later than November 4, 2022, at 11:59 p.m. (prevailing Central Time) (the "Bondholder Bar Date"), as follows:

• Holders of Direct-Held L Bonds ("Direct Holders”): If you hold your L Bond(s) directly in your name, you are a Direct Holder, and you only need to file a proof of claim if you (i) disagree with the Debtors’ calculation of the principal and interest owed on account of your L Bonds as of the petition date, as set forth in the Notice to Direct-Held Bondholders Regarding Bondholder Claims Bar Date (the "Direct Holder Notice”), which was mailed to you, and/or (ii) want to assert any other claim arising under the L Bonds (other than a claim for principal and interest), including claims under securities laws ("Other Bond Claims”).

  • If you have reviewed the Debtors’ calculation of the principal and interest owed on account of your L Bonds as set forth in the applicable Direct Holder Notice and do not disagree with the amounts, you do not need to file a proof of claim for principal and interest, and your claim for principal and interest will be allowed in the amounts detailed by the Debtors.
  • If you wish to dispute the Debtors’ calculation of the principal and interest owed on account of your L Bonds as set forth in the applicable Direct Holder Notice, you must file a proof of claim by the Bondholder Bar Date asserting what you believe to be the correct principal and interest owing as of the Petition Date (April 20, 2022).
  • If you wish to assert any Other Bond Claims, you must file a proof of claim by the Bondholder Bar Date asserting such claims.

  • The proof of claim form for Direct Holders is available here.

• Holders of indirect-held L Bonds ("Indirect Holders”): If you do not hold your L Bond(s) directly in your name (i.e., if you hold them in a financial account, such as with a broker or investment advisor), you are an Indirect Holder, and you only need to file a proof of claim if you want to assert any Other Bonds Claims. The principal and interest amounts as set forth in Schedule 1 to the Notice to Indirect-Held Bondholders Regarding Bondholder Claims Bar Date (the "Indirect Holder Notice”), which was mailed to you, have been allowed pursuant to the Bondholder Bar Date Order.

  • If you wish to assert any Other Bond Claims, you must file a proof of claim by the Bondholder Bar Date asserting such claims.

  • The proof of claim form for Indirect Holders is available here.

Claims against non-Debtors, such as against brokers or other third-parties, should not be filed in these chapter 11 cases.

If you have not received a Direct Holder Notice or Indirect Holder Notice, as applicable, and believe that you should have, please contact the Debtors’ Claims and Noticing Agent, Donlin, Recano & Company, Inc. ("Donlin”), toll free at 1 (888) 508-2507 or via e-mail to gwginfo@angeiongroup.com.

Proofs of claims must be submitted to Donlin so as to be actually received by no later than November 4, 2022, at 11:59 p.m. (prevailing Central Time) and may be submitted by mail, hand delivery, or electronically through the Donlin website by following the instructions detailed in the Direct Holder Notice or Indirect Holder Notice, as applicable, or located here.

Please note that the foregoing is intended to be a summary of the court approved procedures and in the event of any conflict between the above summary and the terms of the Bondholder Bar Date Order, the Bondholder Bar Date Order will control in all respects. The Committee encourages all bondholders to review the Bondholder Bar Date Order and the Direct Holder Notice or Indirect Holder Notice, as applicable, in their entirety for additional details regarding the bondholder proof of claim procedures, which can be found at the tab on the left side of this page entitled "Bondholder Claims Bar Date and Proof of Claim Forms.”

The Committee was appointed on May 9, 2022. The Committee as appointed consists of (i) certain holders of L Bonds issued under that certain Amended and Restated Indenture dated as of October 23, 2017, by and between GWG Holdings, Inc. (together with certain affiliates, the “Company” or the “Debtors”), as issuer and obligor, GWG Life, LLC, as obligor, and Bank of Utah, as Indenture Trustee (as amended and supplemented, the “A&R Indenture”), and (ii) the Indenture Trustee.

The members of the Committee are:

• Bank of Utah, as Indenture Trustee
• Thomas Horton
• Donald W. Rhodes
• Matthew Pearce
• Ali Danesh
• Frank S. Moore

The Committee’s primary function is to represent the interests of all holders of L Bonds (the “Bondholders”) and to act as the negotiating body on behalf of the Bondholders.

Members of the Committee have a fiduciary duty to all Bondholders. This means that members of the Committee must act with loyalty to all of the Bondholders and avoid any conflict of interest that would impair that loyalty. Members of the Committee also have an obligation to maintain the confidentiality of confidential or sensitive information obtained from the Debtors.

The Committee has selected Porter Hedges LLP and Akin Gump Strauss Hauer & Feld LLP (“Akin Gump”) to serve as co-counsel to the Committee. In addition, the Committee has selected Piper Sandler & Co. to serve as its investment banker and AlixPartners, LLP to serve as its financial advisor. The fees and expenses of the Committee’s co-counsel and advisors will be paid by the Debtors and subject to review by the Bankruptcy Court.

There are approximately 27,000 retail investors holding L Bonds.

This remains to be determined. Part of the bankruptcy process will include a determination of value of GWG’s assets. At this time, the Committee and its advisors are working to understand and assess the value of GWG’s assets.

The Debtors have stated that the approximate face amount of the life insurance policies held by the Debtors’ subsidiaries (the “Policy Portfolio”) is $1.732 billion. The face amount of the Policy Portfolio is not the value of the Policy Portfolio, however, given, among other factors, the costs of servicing the life insurance policies prior to the maturities.

The Debtors have entered into an option agreement under which they have a right, but not the obligation to sell the Policy Portfolio for a price of at least $610 million. To the extent that the Debtors are able to exercise their option to sell their Policy Portfolio, the proceeds of such sale would be used to satisfy, among other things, the valid obligations of the non-debtor subsidiaries that own the Policy Portfolio prior to the proceeds being available for distribution to the Bondholders. According to the Debtors, there is approximately $450 million in obligations that would need to be satisfied from the proceeds of a Policy Portfolio sale prior to any distribution to the Bondholders.

The Committee and its advisors are independently evaluating all of the foregoing matters.

It is unknown whether the Debtors will sell all, some or none of their assets and/or whether the Debtors will reorganize and continue to exist after the bankruptcy proceeding. When the Debtor reaches a determination about the path forward, the Debtors will file documents with the Court explaining what they propose to do.

In terms of priority of payment, with respect to proceeds of the Policy Portfolio, Bondholders stand behind the valid claims of lenders to the non-debtor subsidiaries of the Debtors that own the Policy Portfolio and the lenders under the $65 million of debtor in possession financing (the “DIP Financing”). With respect to the other assets of the Debtors that are collateral for the L Bonds, the Bondholders will have priority of payment, behind the DIP Financing lenders. In addition to the foregoing, certain claims that are incurred to preserve the Debtors’ estates may also be satisfied prior to payments to the Bondholders.

The amount and form of consideration to be received by the Bondholders is unknown at this time. The possible forms of consideration include cash, equity interests in the reorganized company and/or interests in a litigation or liquidation trust.

Please note that the Committee cannot provide any assurance as to the likelihood, value or timing of the consideration that will be provided to Bondholders, and Bondholders may very well receive consideration of a value less than the full amount of the L Bonds that they hold. This will be determined by the plan of reorganization or plan of liquidation that has yet to be negotiated.

Further information will be provided at a later date with respect to the expected amount and timing of any distributions and any procedures that must be followed in order to receive a distribution. The Committee will work to ensure that all Bondholders receive all of the information that they require in order to receive any distributions that may be provided.

It is difficult to forecast the amount of time needed for any bankruptcy case to run its course. At this time, it is likely that the GWG bankruptcy case will not be resolved prior to the end of 2022.

Further, in order for any Bondholders to receive any distribution on account of their L Bonds, the Court must approve the Debtors’ plan, which has not yet been developed. No distributions will be made to Bondholders prior to such time.

Bondholders should keep an eye on the Committee’s website for additional information, and feel free to reach out to the Committee via the contact information provided on the Committee website.