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J.G. Wentworth Completes Restructuring With Financing from HPS Investment Partners

January 26, 2018, 07:40 AM
Filed Under: Bankruptcy

The J.G. Wentworth Company® announced it has successfully completed its reorganization in coordination with its lenders, pursuant to the Company’s Joint Prepackaged Chapter 11 Plan of Reorganization that was confirmed by the U.S. Bankruptcy Court for the District of Delaware on January 17, 2018. The Company continued operations without interruption throughout the brief, in-court restructuring process.

Through its Plan, the Company fully extinguished $449.5 million in principal of outstanding debt, while securing a new revolving credit facility of approximately $70 million, supplied by HPS Investment Partners, LLC. The Company estimates that its debt service will be reduced from $32 million to approximately $5 million annually, and that its net leverage will be reduced from approximately 12.4x to 1.0x as a result of the reorganization. By deleveraging its balance sheet, the Company has emerged from the restructuring process with enhanced financial flexibility and the ability to accelerate its long-term growth initiatives.

“Today, we have reached the final milestone in the restructuring process,” said Stewart A. Stockdale, Chief Executive Officer. “The Company has emerged stronger and more financially secure, allowing us flexibility to execute our business goals, focusing on growth and expansion, and to continue serving our customers’ needs.”

The efficient completion of the reorganization process reflects the Company’s alignment with its Lenders. Lenders have exchanged their claims under the Company’s extinguished credit facility for cash consideration and at least 95.5 percent of the equity in the newly-restructured Company.

Throughout the reorganization process the Company has remained steadfast in delivering business results. J.G. Wentworth Home Lending, LLC has demonstrated record growth in loan originations and is increasing operational capacity through various technology and process improvements. The Company has also continued to lead the market in structured settlement, annuity and lottery payment purchasing. Following the emergence, the Company is well positioned to focus on operational excellence, growth, and expansion.

The Company will retain its leadership team which remains committed to delivering financial solutions that can meet a number of consumer needs.

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