ASSETS OF THE TRUST
Under the Plan, the Trust were assigned the following interests:
- A life insurance policy portfolio;
- Common stock in FOXO, an epigenetics technology company developing products for the life insurance industry;
- Common stock in Beneficient; and
- Any Proceeds generated by the pursuit of the causes of action prosecuted under the Litigation Trust. The Litigation Trust was established and funded as a separate trust apart from the Wind Down Trust to prosecute litigation on behalf of the beneficiaries of the Wind Down Trust. Michael Weinberg of Akerman is the appointed Trustee of the Litigation Trust.
Life Insurance Policy Portfolio. One of the primary assets of the Trust was a portfolio of life insurance policies. GWG Holdings, Inc. was a financial services firm that historically specialized in life settlement assets. Life settlement assets are whole life insurance policies (with only a minority being variable) acquired directly or indirectly from the insured person or other owners of a life insurance policy. Under the Plan, the Policy Portfolio was transferred to Life Recovery Fund, LLC. The Trust was the sole member of Life Recovery Fund, LLC.
On October 13, 2023, the Trust sold the entire life insurance portfolio to Apex Longevity Fund, LLC through the sale of 100% of the Trusts membership interests in Life Recovery Fund, LLC. The net present value of the life insurance portfolio was approximately $605 million. However, Obra (Vida) Credit Facility held a fully collateralized loan against the portfolio for approximately $605 million. The Trust, having no income, could not service the premiums of approximately $10-15 million per month in order to have realized the full, face value of the portfolio at approximately $1.6 billion. The Trust realized gross proceeds of $10 million from the sale of the membership interest in Life Recovery Fund, LLC.
FOXO The Trust held approximately 4.6 million shares of common stock in FOXO Technologies, Inc. On October 13, 2023, the GWG Wind Down Trust sold its stock holdings of FOXO Technologies, Inc. (4,646,698 shares in total) and will realize net proceeds of $586,943.
BEN The Trust holds approximately 169.7 million shares of common stock in Beneficient.
Litigation Proceeds Michael Goldberg, Litigation Trustee, will pursue separately from the GWG Wind Down Trust the “Retained Causes of Action”. The proceeds received by the GWG Wind Down Trust from any success by the Litigation Trustee in prosecution of these lawsuits shall be used solely to make the distributions under the confirmed Plan and the Litigation Trust Amounts may not be used for any other purpose without the approval of the Bankruptcy Court or written consent of the Litigation Trustee.
HOW DOES THE TRUST OPERATE?
The day-to-day operations of the Trust are managed by the Trustee. The Trustee is ultimately responsible for all decisions made. However, the Trustee utilizes a team of cost conscious professional service groups to provide her with the financial, accounting, operational and legal support to provide the best strategies for the Trust to maximize the return to the WDT Interest holders.
WHAT DO I OWN?
- New Series A1 WDT Interests – issued to the Holders of Allowed Class 3 Bond Claims (other than LBM Subordinated Claims), in an amount equal to the aggregate dollar amount of the outstanding Allowed Bond Claims (less the amount of the Allowed LBM Subordinated Claims);
- New Series A2 WDT Interests – issued to the Holders of Allowed LBM Subordinated Claims in Class 3;
- New Series B WDT Interests – issued to the Holders of Class 4(a) Allowed General Unsecured Claims;
- New Series C WDT Interests – issued to the Holders of Allowed Class 8 Series 1 Preferred Interests;
- New Series D WDT Interests – issued to the Holders of Allowed Class 9 Series 2 Preferred Interests; and
- New Series E WDT Interests – issued to the Holders of Allowed Class 10 Existing Common Stock.