J.G. Wentworth Bankruptcy Plan Filed


J.G. Wentworth filed with the U.S. Bankruptcy Court an Amended Joint Pre-Packaged Plan of Reorganization.

According to documents filed with the Court, “Notwithstanding anything to the contrary in the Plan or the Plan Documents, (a) each Administrative Claim and any Claim arising prior to the Effective Date in Class 2 or 3 (including Claims for Cure and Claims arising from the rejection of any Executory Contract or Unexpired Lease, if any) of the Plan (each, an ‘Unimpaired Claim’) shall not be deemed settled, satisfied, resolved, released, discharged, barred or enjoined by any provision of the Plan or the Plan Documents, and (b) the property of the Debtors’ Estates that vests in the Reorganized Debtors pursuant to Article V.I of the Plan shall not be free and clear of the right of the Holder of such Unimpaired Claim to enforce its contractual rights in respect of its Unimpaired Claim against the Reorganized Debtors, in each case, until such Claim has been (x) paid in full in accordance with applicable law, or on terms agreed to between the Holder of such Claim and the Debtors or Reorganized Debtors, or in accordance with the terms and conditions of the particular transaction giving rise to such Claim or (y) otherwise satisfied or disposed of as determined by a court of competent jurisdiction. The Debtors, the Reorganized Debtors and any other Entity shall retain all defenses, counterclaims, rights to setoff, and rights to recoupment, if any, as to Unimpaired Claims.”

In addition, “Each holder of New Class A Common Stock and New Class B Common Stock shall be deemed to be a party to and bound to the terms of the Stockholders Agreement and each holder of the New Partnership Interests shall be deemed to be a party to and bound to the terms of the New Partnership Operating Agreement, as applicable, from and after the Effective Date even if not a signatory thereto.”

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