J.G. Wentworth Co. filed a pre-packaged petition for Chapter 11 protection, the second timein five years the specialty finance comoany has sought credit protection from the courts. The company is seeking to restructure $450 million in debt in a deal that hands over control to term lenders with a debt-for-equity swap. A regulatory filing Jefferies Finance LLC served as administrative agent and collateral agent for the term-loan lenders.

According tp The Wall Street Journal, during the proceedings in U.S. Bankruptcy Court in Delaware, J.G. Wentworth Chief Executive Stewart Stockdale said it will get a new revolving credit facility from one of its prebankruptcy lenders, which will help the company maintain ongoing business operations with virtually no interruption.

J.G. Wentworth said its operating units, which also include a mortgage-lending business that does business with the U.S. government, won’t be part of the bankruptcy filing.

“The restructuring is a pure balance sheet restructuring at the corporate level and is not an operational restructuring of the company,” Stockdale said, according to The Wall Street Journal.

The Debtors have requested that the Chapter 11 Cases be jointly administered under the caption Orchard Acquisition Company, LLC, accordingto an 8-K filing. Only the Debtors have filed the Chapter 11 Cases. Accordingly, the direct and indirect subsidiaries of Orchard Acquisition Company, LLC, including the entities which conduct all of the Company’s consolidated operations, have not filed any Chapter 11 cases. The Company intends to continue to operate its businesses as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. The Company expects ordinary-course operations to continue substantially uninterrupted during and after the Chapter 11 Cases. The Debtors are seeking approval from the Bankruptcy Court for relief under “first day” motions authorizing the Debtors to continue to conduct their businesses in the ordinary course through non-debtor affiliates.

In November the company announced an agreement  with lenders holding over 87% of the aggregate principal amount outstanding under the Company’s $449.5 million senior secured credit facility, to significantly deleverage the Company. The agreement, under which current Lenders have agreed to exchange their claims under the Credit Facility for cash consideration and at least 95.5% of the equity in the newly-restructured Company, will enable the Company to enhance its financial flexibility, fortify its balance sheet and accelerate its long-term growth initiatives.