Angry Retail Bondholders Kick Off Contentious GWG Bankruptcy (1)

Life insurance bond seller GWG Holdings Inc.faced stiff opposition from retail investors -- some of whom had invested their life’s savings in the company’s products -- in its first day in bankruptcy court, kick-starting a contentious case.

GWG, which has historically bought life insurance policies and sold bonds to small-time investors backed by those policies, filed for Chapter 11 bankruptcy this week. The company ran low on cash and missed debt payments after a U.S. Securities and Exchange Commission probe into its accounting policies and sales practices chilled its access to capital markets.

Far from the ho-hum nature of ...