Simpson Thacher is representing The J.G. Wentworth Company, LLC and its affiliates (the “Company”) in a comprehensive restructuring that will significantly deleverage the Company’s balance sheet. The Company entered into a restructuring support agreement (the “RSA”) on November 9, 2017 with over 87% of the term loan lenders (the “Lenders”) under the Company’s $449.5 million senior secured credit facility and a majority of its equity holders, which sets forth the key terms of the restructuring and a timeline and process for its implementation.
The RSA contemplates that the restructuring will be implemented under Chapter 11 of the Bankruptcy Code through voluntary pre-packaged filings in the U.S. Bankruptcy Court for the District of Delaware. The transaction will result in the Lenders exchanging their term loans for cash consideration and at least 95.5% of the equity in the reorganized company. The Company’s existing equity holders and holders of claims against the Company arising from a tax receivable agreement will receive the balance of the equity in the reorganized company (subject to an election to receive cash consideration instead). All such reorganized equity will be subject to dilution by equity granted pursuant to a post-restructuring management incentive plan. The RSA also contemplates that one of the Lenders will provide a new secured revolving credit facility in the amount of at least $65 million, but no greater than $70 million. The restructuring is anticipated to be consummated in or around January 2018.
Headquartered in Chesterbrook, Pennsylvania, the Company is a provider of direct-to-consumer financing solutions through a variety of avenues, including mortgage lending and refinancing, structured settlement, annuity and lottery payment purchasing, prepaid cards and access to providers of personal loans.
The Simpson Thacher team includes Elisha Graff, Kathrine McLendon, Edward Linden, Randi Lynn Veenstra and Haley Garrett (Restructuring and Bankruptcy); Bill Curbow and Michael Chao (M&A); Christopher Brown, James Doyle, Jim Russell and Mark Haddox (Banking and Credit); Ryan Bekkerus, Arjun Koshal and Ronnie Lim (Capital Markets); Sarah Katz (Tax); Larry Moss (ECEB); and Jennie Getsin (Blue Sky).