J.G. Wentworth

The J.G. Wentworth Company
Public
Traded as OTCQX: JGWEQ
Industry Finance
Founded 1991 (1991)
Headquarters Chesterbrook, Pennsylvania, U.S.
Area served
 United States
Key people
 Randi Sellari (CEO, Specialty Finance)
Dwight Perry (CFO)
Randy Parker (COO)
Services Buys Structured Settlement payments  · Fixed Annuities  · Lottery Winnings  · Lawsuit Advance
Website www.jgwentworth.com

The J.G. Wentworth Company is a diversified financial services company, focused on providing direct-to-consumer access to financing solutions through a variety of avenues, including mortgage lending and refinancing, structured settlement, annuities, lottery payment purchasing, home lending, prepaid cards, and access to providers of personal loans.[1][2] The firm is currently traded publicly on the OTCQX (symbol: JGWE).[3]

In the United States, the company is known for its television advertisements featuring "Mr. Wentworth",[4] but more recent commercials have included Wagnerian opera singers.[5]

History

J.G. Wentworth was founded in 1991 as a merchant bank specializing in transactions in the healthcare industry.[6][7] In 1992, the company began to purchase New Jersey's auto insurance deferrals from claimants who could not afford to wait 12 to 18 months for their settlements.[8]

Prior to 1999 there was no state regulation for structured settlements in the state of New York. Eliot Spitzer entered into a contract with J.G. Wentworth to help protect New Yorkers from selling their settlements at exorbitant rates. The agreement stipulated that J.G. Wentworth could receive a rate of no more than 25 percent of the annual discount rate of annuities it had purchased from a citizen of the state of New York.[9] At the time, a JGW executive told the New York Times that the firm sought the agreement because of the rate at which its business had grown in recent years.[10]

In May 2009, following the financial crisis, J.G. Wentworth's parent company, JGW Holdco LLC, entered Chapter 11 bankruptcy protection. The company cited "liquidity problems amid a tightening credit market" as the catalyst for filing.[11] In June 2009, JGW Holdco LLC received $100 million in equity from primary stakeholder JLL Partners, which allowed the company and its subsidiaries to emerge from bankruptcy.[12]

In 2011, J.G. Wentworth and Peachtree Financial Solutions, which also purchased structured settlement, annuity, and lottery payments, formed a new holding company, JGWPT Holdings LLC. The two companies continued to operate independently after the transition.[13]

In October 2013, the firm filed for an initial public offering,[14][15] which was offered the subsequent month. The company was initially listed on the New York Stock Exchange under the symbol JGWE.[16]

In 2015, J.G. Wentworth began expanding their financial offerings by purchasing WestStar Mortgage for $54 million in common shares and cash.[17] In the same year, the company also announced a partnership with Visa to offer a prepaid card to customers.[18]

In June 2016, J.G. Wentworth was delisted from the NYSE for failing to satisfy the continued listing rule.[19] Later that month, the company began trading on the OTC Markets Group under the symbol JGWE.[20]

On November 8, 2017, J.G. Wentworth filed for Chapter 11 bankruptcy for the second time in 9 years.[21] JGWE stock plummeted as much as 87% on November 10, 2017. The company is expected to emerge from bankruptcy in or around January 2018 after coming to an agreement with lenders prior to filing.[22][23]

Commercials and awards

The commercials that run on daytime television in the United States featuring "Mr. Wentworth" are how the company is best known. The company has had many commercial series with Mr. Wentworth; however, more recent series feature Wagnerian opera singers.[24] The tagline featured in the commercials is "It's my money and I need it now!" and "It's your money; use it when you need it!"

JGW has won several domestic and international awards for its television advertising, including a silver Davey award.[25] The "Wagnerian Opera" commercial won two International Summit Awards for Best Humor and Best TV between US$75k and US$100k.[26][27]

J.G. Wentworth brands and subsidiaries

J.G. Wentworth owns and operates under a number of brands. The main two brands owned by J.G. Wentworth are J.G. Wentworth and Peachtree.

Additional brands and subsidiaries include:[28][29]

  • J.G. Wentworth, LLC
  • Peachtree Life Settlements, LLC
  • J.G. Wentworth Home Equity Services, LLC
  • Orchard Acquisition Company, LLC
  • J.G. Wentworth Structured Settlement Funding II, LLC
  • PeachHI, LLC
  • J.G. Wentworth SSC, LP
  • Red Apple Management Company, LLC
  • Golden Apple Management Company, LLC
  • J.G. Wentworth Management Company, LLC
  • J.G. Wentworth Originations, LLC
  • Green Apple Management Company, LLC
  • Qualified Provider Associates, LLC
  • JGW Pre-Settlement Funding, LLC
  • Cash Now Loans, LLC
  • J.G. Wentworth Receivables II, LLC
  • Peachtree Originations, LLC
  • Lottery Originations, LLC
  • Settlement Funding Management Company, LLC
  • Peach Holdings, LLC
  • Receivables Collections, LLC
  • JGW II, LLC
  • JGW III, LLC
  • JGW-S LC I, LLC
  • JGW-S LC II, LLC
  • JGW-S Holdco, LLC
  • LCSS, LLC
  • JGW-S I, LLC
  • JGW-S II, LLC
  • JGW-S III, LLC
  • R.C. Henderson, LLC
  • 321 Henderson Receivables Acquisition, LLC
  • JGW Residual I, LLC
  • JGW-S IV, LLC

References

  1. ↑ "THE J.G. WENTWORTH COMPANY® ANNOUNCES LAUNCH OF NATIONAL MARKETING CAMPAIGN TO SUPPORT J.G. WENTWORTH HOME LENDING™". corporate.jgwentworth.com. Retrieved 2015-08-17.
  2. ↑ Chasan, Emily (2009-05-19). "UPDATE 1-J.G. Wentworth files prepackaged bankruptcy | Reuters". In.reuters.com. Retrieved 2012-06-02.
  3. ↑ "The J.G. Wentworth Company® To Begin Trading On The OTCQX Market Under The Ticker Symbol "JGWE"". finance.yahoo.com. 2016-06-17. Retrieved 2016-06-21.
  4. ↑ Beaver, Dennis (2011-03-12). "You and the Law: Have a structured settlement, but need cash now?". Hanfordsentinel.com. Retrieved 2012-06-02.
  5. ↑ Hage, Jeff (2011-06-30). "It's hard to shake a good jingle". Princeton Union-Eagle. Archived from the original on 2012-04-06. Retrieved 2012-06-02.
  6. ↑ "JGWPT: Private Company Information - Businessweek". Investing.businessweek.com. Retrieved 2012-06-02.
  7. ↑ "IPO Filings". Ipo.nasdaq.com. Archived from the original on 2012-03-08. Retrieved 2012-06-02.
  8. ↑ "Office of the Governor | Newsroom". State.nj.us. Retrieved 2012-06-02.
  9. ↑ "Archived copy". Archived from the original on 2010-05-08. Retrieved 2010-05-11.
  10. ↑ NEIL MacFARQUHARPublished: July 30, 1999 (1999-07-30). "Accord Is Reached on Trades Of Cash for Lawsuit Proceeds - New York Times". Nytimes.com. Retrieved 2012-06-02.
  11. ↑ Chasan, Emily (2009-05-19). "UPDATE 1-J.G. Wentworth files prepackaged bankruptcy | Reuters". In.reuters.com. Retrieved 2012-06-02.
  12. ↑ "J.G. Wentworth Receives $100 Million in New Equity; Business Wire". www.businesswire.com. 2009-06-08. Retrieved 2016-09-12.
  13. ↑ "J.G. Wentworth and Peachtree Financial Solutions Seal Deal; PRNewswire". www.prnewswire.com. 2011-07-13. Retrieved 2016-09-12.
  14. ↑ "JGWPT: Private Company Information - Businessweek". Investing.businessweek.com. Retrieved 2012-06-02.
  15. ↑ "IPO Filings". Ipo.nasdaq.com. Archived from the original on 2012-03-08. Retrieved 2012-06-02.
  16. ↑ Alnwick, Julie (2013-10-07). "J.G. Wentworth Operator Files to Raise $200 Million U.S. IPO; Bloomberg". www.bloomberg.com. Retrieved 2016-09-12.
  17. ↑ Nemeroff, Evan. "WestStar Mortgage Bought by J.G. Wentworth for $54M; National Mortgage News". www.nationalmortgagenews.com. Retrieved 2016-09-12.
  18. ↑ Scism, Leslie (2015-03-10). "With latest deal, J.G. Wentworth has more to sell when customers call". blogs.wsj.com. Retrieved 2015-08-20.
  19. ↑ https://biz.yahoo.com/e/160620/jgwe8-k.html
  20. ↑ "The J.G. Wentworth Company® To Begin Trading On The OTCQX Market Under The Ticker Symbol "JGWE"". finance.yahoo.com. 2016-06-17. Retrieved 2016-06-21.
  21. ↑ https://www.bizjournals.com/philadelphia/news/2017/11/10/jg-wentworth-banktrupcy-filing.html
  22. ↑ https://ih.advfn.com/p.php?pid=nmona&article=76063838
  23. ↑ http://www.businesswire.com/news/home/20171109006680/en/J.G.-Wentworth-Company-Announces-Consensual-Restructuring-Agreement
  24. ↑ "J.G. Wentworth's Direct Response Aria". Response Magazine. 2008-08-01. Retrieved 2012-06-02.
  25. ↑ "J.G. Wentworth Launches New Television Commercial | EON: Enhanced Online News". Eon.businesswire.com. 2010-03-16. Retrieved 2012-06-02.
  26. ↑ J.G. Wentworth "Opera" Commercial Wins Two More International Advertising Awards. - Search results from HighBeam Research
  27. ↑ "J.G. Wentworth Gets Animated In New Ad Campaign". SHOOTonline. 2011-02-21. Retrieved 2012-06-02.
  28. ↑ "Paymaster: J.G. Info Page". Archived from the original on 2016-06-01.
  29. ↑ "SEC: JGWPT HOLDINGS INC".
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