J.G. Wentworth Explained

The J.G. Wentworth Company
Area Served:United States
Key People:Randi Sellari (CEO, Specialty Finance)[1]
Dwight Perry (CFO)[2]
Randy Parker (COO)
Industry:Finance
Services:Debt relief
Payment purchasing: structured settlements
Annuities
Lottery and casino winnings
Lawsuit advance
Location:Chesterbrook, Pennsylvania, U.S.

The J.G. Wentworth Company is an American financial services company that purchases structured settlements, annuities, and lottery payments in exchange for a lump-sum cash settlement. They also offer debt counseling and negotiation services.[3]

The company is known for its television advertisements featuring "Mr. Wentworth",[4] and a series featuring performances of a lengthy jingle performed in several styles, including Wagnerian opera singers.[5]

History

J.G. Wentworth was formed by James D. Delaney and Gary Veloric in 1991 as a merchant bank specializing in transactions in the healthcare industry.[6] [7] In 1992, the company began to purchase New Jersey auto insurance deferrals from claimants who could not afford to wait twelve to eighteen months for their settlements.[8] According to Consumer Reports, as of 2010, J.G. Wentworth customers paid an "effective discount rate" amounting to "9 percent to 15 percent or more"; i.e., customers give up 9–15 percent of their future payments in exchange for a present-day cash amount. Though this might be considered a high fee, Consumer Reports says it could be preferable to surrender fees for annuities or other alternatives.[9]

Prior to 1999, there was no regulation for structured settlements in the state of New York. Eliot Spitzer, then New York's state Attorney General, entered into a contract with J.G. Wentworth to regulate the industry and limit fees. The agreement stipulated that J.G. Wentworth could receive a rate of no more than twenty-five percent of the annual discount rate of annuities it had purchased from citizens of the state of New York.[10] 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.[11]

In May 2009, J.G. Wentworth's parent company, JGW Holdco LLC, entered Chapter 11 bankruptcy protection partly as a consequence of the 2007–2008 financial crisis. The company cited "liquidity problems amid a tightening credit market" as the motive for filing.[12] 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.[13]

In 2011, J.G. Wentworth and similar business Peachtree Financial Solutions, formed a new holding company, JGWPT Holdings LLC. The two companies continued to operate independently after the transition.[14]

In October 2013, the firm filed for an initial public offering,[6] [7] which was offered the subsequent month. The company was initially listed on the New York Stock Exchange under the symbol JGWE.[15]

In 2015, J.G. Wentworth expanded their financial offerings with the purchase of WestStar Mortgage for US$44 million in common shares and cash.[16] In the same year, the company announced a partnership with Visa to offer a prepaid card to customers.[17]

In June 2016, J.G. Wentworth was delisted from the NYSE for failing to satisfy the continued listing rule of having an average 30-day market capitalization of at least $15 million.[18] Later that month, the company began trading on the OTC Markets Group under the symbol JGWE.[19]

On November 8, 2017, J.G. Wentworth filed for Chapter 11 bankruptcy for the second time in nine years.[20] JGWE stock plummeted by as much as eighty-seven percent on November 10, 2017. The company was expected to emerge from bankruptcy in or around January 2018 after coming to an agreement with lenders prior to filing.[21] [22]

Commercials and awards

The company is best known for its American daytime television commercials featuring the character of "Mr. Wentworth".

J.G. Wentworth first appeared in the opera commercial in 2002. The commercial played from 2002 to 2007 until the launch of the new campaign in 2008. More recent series feature Wagnerian opera singers performing the company's jingle.[23] Taglines include "It's my money and I need it now!" and "It's your money; use it when you need it!"

J.G. Wentworth has won several domestic and international awards for its television advertising, including a silver Davey award.[24] The "Wagnerian Opera" commercial won two International Summit Awards for Best Humor and Best TV between US$75k and US$100k.[25] [26]

In 2019, J.G. Wentworth reported that it was named in the category of IES Premier Sales Employer by The Institute for Excellence in Sales (IES).[27]

J.G. Wentworth brands and subsidiaries

J.G. Wentworth owns and operates under a number of brands. The main three brands owned by J.G. Wentworth are J.G. Wentworth, Peachtree, and Stone Street Capital.

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

Notes and References

  1. Web site: The J.G. Wentworth Company Names Randi Sellari Chief Executive Officer . Business Wire . 2018-12-07 . 2018-04-27.
  2. Web site: About Our Company . https://web.archive.org/web/20150319150038/http://corporate.jgwentworth.com/about/leadership-team/ . March 19, 2015 . The J. G. Wentworth Company . 2018-12-07. dead.
  3. Web site: J.G. Wentworth. 2015-08-17. corporate.jgwentworth.com.
  4. Web site: Beaver . Dennis . You and the Law: Have a structured settlement, but need cash now? . . 2011-03-12 . 2012-06-02.
  5. Web site: It's hard to shake a good jingle. Hage. Jeff. 2011-06-30. Princeton Union-Eagle. https://web.archive.org/web/20120406113925/http://unioneagle.com/2011/06/its-hard-to-shake-a-good-jingle/. 2012-04-06. dead. 2012-06-02.
  6. Web site: JGWPT: Private Company Information - Businessweek . https://web.archive.org/web/20101206102509/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=968960 . dead . December 6, 2010 . Investing.businessweek.com . 2012-06-02.
  7. Web site: IPO Filings . Ipo.nasdaq.com . 2012-06-02 . dead . https://web.archive.org/web/20120308230820/http://ipo.nasdaq.com/TextSection.asp?cikid=44308&fnid=9536&sec=bd . 2012-03-08 .
  8. Web site: Office of the Governor | Newsroom . State.nj.us . 2012-06-02.
  9. Web site: Is J.G. Wentworth's offer really worth it? - Consumer Reports.
  10. Web site: Spitzer Announces First-Of-Its-Kind Agreement to Protect Consumers Who Win, and then Sell, Personal Injury Settlements . 2010-05-11 . dead . https://web.archive.org/web/20100508074058/http://www.ag.ny.gov/media_center/1999/jul/jul29b_99.html . 2010-05-08 .
  11. News: NEIL MacFARQUHARPublished: July 30, 1999 . Accord Is Reached on Trades Of Cash for Lawsuit Proceeds - New York Times . . 1999-07-30 . 2012-06-02.
  12. News: Chasan. Emily. 2009-05-19. UPDATE 1-J.G. Wentworth files prepackaged bankruptcy | Reuters. In.reuters.com. 2012-06-02.
  13. News: J.G. Wentworth Receives $100 Million in New Equity; Business Wire . www.businesswire.com . 2009-06-08. 2016-09-12.
  14. News: J.G. Wentworth and Peachtree Financial Solutions Seal Deal; PRNewswire . www.prnewswire.com . 2011-07-13 . 2016-09-12.
  15. News: Alnwick . Julie . J.G. Wentworth Operator Files to Raise $200 Million U.S. IPO; Bloomberg . www.bloomberg.com . 2013-10-07 . 2016-09-12.
  16. News: Nemeroff . Evan . WestStar Mortgage Bought by J.G. Wentworth for $54M; National Mortgage News . www.nationalmortgagenews.com . 2016-09-12.
  17. News: With latest deal, J.G. Wentworth has more to sell when customers call . blogs.wsj.com . 2015-03-10 . 2015-08-20 . Leslie . Scism.
  18. Web site: 2016-06-17 . NYSE to Suspend Trading IMMEDIATELY IN THE J.G. WENTWORTH COMPANY, INC. (jgw) AND COMMENCE DELISTING PROCEEDINGS . 17 July 2024 . Intercontinental Exchange.
  19. News: 2016-06-17. The J.G. Wentworth Company® To Begin Trading On The OTCQX Market Under The Ticker Symbol "JGWE". finance.yahoo.com. dead. 2016-06-21. https://web.archive.org/web/20160812065251/http://finance.yahoo.com/news/j-g-wentworth-company-begin-212900919.html. 2016-08-12.
  20. News: Blumenthal . Jeff . For second time in 9 years, publicly traded financial services firm files for bankruptcy . . 2017-11-10 . 2019-08-14 .
  21. Web site: Current Report Filing (8-k). Investors Hub. 26 October 2018.
  22. The J.G. Wentworth Company Announces Consensual Restructuring Agreement with Lenders to Significantly Reduce its Debt and Fortify its Balance Sheet. 9 November 2017. 26 October 2018.
  23. Web site: J.G. Wentworth's Direct Response Aria . Response Magazine . 2008-08-01 . 2012-06-02 . https://web.archive.org/web/20110930024107/http://www.responsemagazine.com/response-magazine/jg-wentworths-direct-response-aria-1237?page_id=4 . 2011-09-30 . dead .
  24. Web site: J.G. Wentworth Launches New Television Commercial . Business Wire . 2010-03-16 . 2019-08-13.
  25. Web site: J.G. Wentworth "Opera" Commercial Wins Two More International Advertising Awards . Business Wire . 2009-05-13 . 2019-08-13.
  26. Web site: J.G. Wentworth Gets Animated In New Ad Campaign . SHOOTonline . 2011-02-21 . 2012-06-02.
  27. Web site: 19 December 2019. J.G. Wentworth honored as a Premier Sales Employer in the First-Ever Premier Sales Employers Guide. 22 June 2020. Cision PR Newswire.
  28. Web site: Paymaster: J.G. Info Page. dead. https://web.archive.org/web/20160601200834/http://paymaster.co/jg-wentworth/. 2016-06-01.
  29. Web site: SEC: JGWPT HOLDINGS INC..

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