On April 20, 2022, GWG Holdings, Inc. and several affiliates filed voluntary bankruptcy petitions under chapter 11 of the Bankruptcy Code.  On October 31, 2022, the DLP Debtors filed their own chapter 11 cases.  On June 20, 2023, the Court confirmed the Debtors’ joint Plan (the “Plan”)[1] by entering its Findings of Fact, Conclusions of Law, and Order Confirming Debtors’ Further Modified Second Amended Joint Chapter 11 Plan (ECF. No 1952) (the “Confirmation Order”).  The Plan went effective on August 1, 2023 (the “Plan Effective Date”).  The Wind Down Trust and the Litigation Trust were created pursuant to the Plan.  Michael I. Goldberg was appointed as the trustee of the Litigation Trust.  Elizabeth C. Freeman was appointed as the trustee of the Wind Down Trust (the “WDT Trustee”).  The Trusts are governed by the Plan, Confirmation Order, the GWG Wind Down Trust Agreement (the “WDT Agreement”) and the Litigation Trust Agreement.

The Litigation Trust received all of the Debtors’ interest in the D&O Liability Insurance Policies (as defined in the Plan) and all of the Debtors’ litigation claims.  The net amount recovered from the pursuit or settlement of the litigation claims will be distributed by the Litigation Trust to the Wind Down Trust.  The Wind Down Trust was vested with the reversionary and beneficial interest in the Litigation Trust plus all of the Debtors’ non-litigation assets, including the following:

• 4,646,698 shares of Class A common stock, par value $0.0001 per share of FOXO Technologies Inc. (NYSE American: FOXO) (“FOXO Stock”);
• 169,701,487 shares of Class A common stock, par value $0.001 pe share of Beneficient (NASDAQ:BENF) (the “Ben Stock”); and
• The Policy Portfolio Equity Interests.

The WDT Trustee is charged with liquidating the Wind Down Trust assets.  As of the Plan Effective Date, the Debtors’ approximately 26,000 L bondholders, as well as other stakeholders (including all other general unsecured creditors, preferred equity holders, and common equity holders), hold interests in the Wind Down Trust (collectively, the “WDT Interest holders”).  To extent available, WDT Interest holders will receive distributions from the Wind Down Trust in accordance with the Plan and WDT Agreement. 

The WDT Trustee provides the summary of major events on a quarterly basis regarding her efforts to liquidate the Wind Down Trust assets. Please see the link(s) to each quarterly Status Report.