Lenders holding a majority share in The J.G. Wentworth Co. agreed late last week to restructure and deleverage the embattled company as its operations stabilize and its mortgage unit grows.

A large group of investors are exchanging their claims for cash consideration and at least 95.5% of the equity in the restructured company through an in-court process. The process is not expected to impact daily management of the company or its operations.

The agreement with investors holding more than 87% of the principal amount outstanding under the company's $449.5 million credit facility would extinguish that facility. A new secured revolving credit facility between $65 million and $70 million would replace it.

J.G. Wentworth restructures

"After careful consideration and discussion with our board of directors and lenders, we firmly believe this agreement is the best way to recapitalize the company and position ourselves to better serve the evolving needs of our customers," said CEO Stewart Stockdale in a press release.

"We are proud to have a strong brand in the market that has proven it can serve as an umbrella to expand our business to additional products. The company is having promising operational and financial performance so the deleveraging comes at an opportune time," he said.

Among the units with promising performance is the J.G. Wentworth Home Lending unit in Woodbridge, Va., which has seen record growth in loan production and is growing its capacity through technological and process improvements, according to the company's press release.

Late last year a former executive from the mortgage company J.G. Wentworth bought in 2015 sued over the acquisition, claiming there were misrepresented terms involved in the deal. The civil suit filed in U.S. District Court in New York's Southern District was dismissed with prejudice earlier this year.