The J.G. Wentworth Company’s Chapter 11 Plan of Reorganization

Davis Polk advised the administrative agent for the $449.5 million prepetition senior secured credit facility of The J.G. Wentworth Company in connection with the successful chapter 11 restructuring of The J.G. Wentworth Company. On January 17, 2018, The J.G. Wentworth Company’s plan of reorganization, which Davis Polk played a leading role in structuring and negotiating, was confirmed by the Bankruptcy Court for the District of Delaware. The J.G. Wentworth Company is expected to emerge from bankruptcy shortly; the reorganized company will have its loans under the prepetition credit facility fully extinguished from its balance sheet, obtain a new secured revolving credit facility of up to $70 million and significantly reduce its annual debt service and net leverage.

Prior to The J.G. Wentworth Company’s December 12, 2017, bankruptcy filing, Davis Polk, in connection with its role advising the administrative agent in the restructuring, worked with a steering committee of lenders in negotiating a restructuring support agreement with The J.G. Wentworth Company. Members of the steering committee represent holders of over 87% of the credit facility principal outstanding and upon emergence, the steering committee will own a substantial majority of the equity of the reorganized company.

The J.G. Wentworth Company is engaged in providing direct-to-consumer access to financing solutions through mortgage lending and refinancing, structured settlement, annuity and lottery payment purchasing, prepaid cards and access to providers of personal loans in the United States. The company is headquartered in Radnor, Pennsylvania.

The Davis Polk restructuring team included partner Damian S. Schaible and associates Natasha Tsiouris, Stephen D. Piraino and Erik Jerrard. The corporate team included partner Leonard Kreynin and associate Bryan M. Quinn. The finance team included partner Meyer C. Dworkin and associate Scott G. Johnsson. Partner Kathleen L. Ferrell provided tax advice. Counsel Ann Becchina provided executive compensation advice. All members of the Davis Polk team were based in the New York office.