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Disability Law: Beyond Structured Settlements
J.G. Wentworth - 2
By Patrick Hindert
This S2KM blog post continues S2KM's reporting (see: J.G. Wentworth - 1) about J.G. Wentworth's financial status.
J.G. Wentworth Securitization - J.G. Wentworth issued the following news release on December 23, 2008:
"Specialty finance company J.G. Wentworth today announced the completion of a $74.6 million securitization of structured settlement and annuity backed notes.
"Commenting on the transaction, J.G. Wentworth Chief Financial Officer John Calamari said, 'Completion of this transaction offers testimony to the strength of our program, our longevity in the asset backed market and the trust that institutional investors have maintained in our notes despite the prevailing environment for asset-backed securities.'
"Mr. Calamari added, 'There have been very few asset backed deals during the fourth quarter of 2008.' By contrast he said that, according to Thomson Reuters, during 2007 there were 1,142 asset-backed deals totaling $864 billion.
"Mr. Calamari said while frozen credit markets have taken their toll on
many businesses and industries including specialty finance companies,
the fundamentals of J.G. Wentworth?s products and services have
continued to be acknowledged. 'Consumers still need liquidity for their
structured settlements and institutional investors continue to look for
fixed income securities with the kind of stable and reliable collateral
that our annuity-backed notes offer.' "
"Because of the strain caused by the economic downturn, financial services firm J.G. Wentworth said its has laid off 120 of its 200 employees and will close its Las Vegas office. The firm will maintain its Bryn Mawr, Pa. headquarters.
"J.G. Wentworth has notified the Pennsylvania Department of Labor and Industry, as required under the Worker Adjustment and Retraining Notification (WARN) Act. The company said the affected employees will continue to receive full salary and benefits for 60 days as required under WARN. Chief marketing officer Ken Murray said the cuts will come from all phases of J.G. Wentworth?s operations.
"Murray said the firm has felt the sting of the 'inefficient securitization market and the increase in the cost of funds.'
"According to the company?s Web site, J.G. Wentworth grew from 100 employees in Bryn Mawr in 2005 to 200 employees the following year.
"J.G. Wentworth, founded in 1991, is a financial services firm specializing in purchasing structured settlements, annuities, and life insurance policies. The company is owned by New York-based private equity firm JLL Partners and moved from Center City Philadelphia to Bryn Mawr in 2003."
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