Davis Polk is advising the administrative agent for The J.G. Wentworth Company’s $449.5 million senior secured credit facility, in connection with a comprehensive restructuring to be implemented through a prepackaged chapter 11 plan of reorganization. On November 9, 2017, The J.G. Wentworth Company and certain of its subsidiaries entered into a restructuring support agreement with the administrative agent, term lenders under the credit facility, and members of The J.G. Wentworth Company, LLC, pursuant to which the lenders will receive cash consideration and at least 95.5% of the equity in the newly-restructured company. Under the terms of the restructuring support agreement, The J.G. Wentworth Company will fully extinguish the loans under its credit facility (and obtain a new secured revolving credit facility up to $70 million), and significantly reduce its annual debt service and net leverage. The restructuring support agreement is supported by holders of over 87% of the term loan principal outstanding and members of The J.G. Wentworth Company, LLC holding over 99% of the ownership interests of The J.G. Wentworth Company, LLC.

In connection with its role advising the administrative agent in connection with the restructuring, Davis Polk is working with a steering committee of lenders.

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 includes partner Damian S. Schaible, and associates Natasha Tsiouris, Stephen D. Piraino and Erik Jerrard. The corporate team includes partner Leonard Kreynin, and associates Bryan M. Quinn and Dongbiao Shen. Partner Kathleen L. Ferrell and associate Jonathan Atkins are providing tax advice. Counsel Ann Becchina is providing executive compensation advice. Members of the Davis Polk team are based in the New York and Northern California offices.

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