The Philadelphia Business Journal on Friday reported that J.G. Wentworth will file for bankruptcy, the second bankruptcy filing by the factoring company in less than a decade.
The Business Journal said the Pennsylvania “company reached an agreement with lenders to significantly reduce its debt and enhance its balance sheet” and that the “agreement also calls for the board of directors the be reconstituted to reflect new ownership of the company.”
In addition, according to the report, the “restructuring will be achieved via a voluntary, pre-packaged bankruptcy filing and is not expected to impact daily management of the company.”
The company is in the business of, among other things, purchasing structured settlement payment rights and rights to receive lottery payments.
J.G. Wentworth also filed bankruptcy in 2009.
The Philadelphia Business Journal’s report is available here.