Annuity, life insurance policy purchaser J.G. Wentworth files for bankruptcy

J.G. Wentworth Inc., a financial services firm specializing in purchasing structured settlements, annuities and life insurance policies, filed for Chapter 11 bankruptcy protection Tuesday with hopes to reorganize.

The Bryn Mawr, Pa.-based company filed for bankruptcy in the U. S. Bankruptcy Court in Delaware.

The company sought acceptance of its plan from its lenders before what is called a prepackaged filing. More than 90 percent of the term lenders approved, the company said. J.G. Wentworth said the plan will allow it to substantially reduce its debt load while providing the enterprise with $100 million of new equity to support ongoing operations. Its operating units will continue to conduct business without interruption during the reorganization process, which is expected to be completed within roughly 30 days. The company said it also secured a commitment for debtor-in-possession financing to supplement its working capital and provide adequate liquidity during the proceedings...

BizJournals: Annuity, life insurance policy purchaser J.G. Wentworth files for bankruptcy