J.G. Wentworth Co., known for its “877-Cash-Now” television ads, filed for bankruptcy protection yesterday citing challenges ranging from unsustainable debt obligations to new competition that is easily able to find customer leads online, WSJ Pro Bankruptcy reported. It marked the second bankruptcy filing in less than nine years for J.G. Wentworth, which last month announced a debt-for-equity swap with lenders that the specialty finance company warned would involve another chapter 11 reorganization. Earlier this month the Chesterbrook, Pa.-based company, which offers mortgages and buys life insurance policies and other hard-to-sell assets, began conducting voting on a restructuring deal that it had reached last month with lenders. J.G. Wentworth said in court filings yesterday that its pre-packaged reorganization plan has received enough votes from lenders and others.
