v3.26.1
Other Assets and Other Liabilities
 12 Months Ended
Mar. 31, 2026
Other Liabilities Disclosure [Abstract]  
Other Assets and Other Liabilities Other Assets and Other Liabilities
The following table details the components of other assets:
(Dollars in thousands)March 31, 2026March 31, 2025
Insurance reimbursable receivable, net (Note 20)
$4,122 $39,574 
Prepaid expenses1,614 2,367 
Fixed assets (Note 7)
1,082 1,732 
Distribution receivables181 348 
Promissory notes receivable
5,517 5,517 
Allowance for promissory notes receivable and other receivables(5,517)(5,517)
Loan fee receivable
2,932 2,932 
Allowance for loan fee receivable(2,932)— 
Other assets2,128 2,191 
Total Other assets, net$9,127 $49,144 
Promissory Notes Receivable
There are amounts due under two promissory note agreements for funds advanced outside of our normal liquidity arrangements with and original principal balances of $2.5 million and $0.9 million as of March 31, 2026 and 2025. Both promissory note agreements matured and were placed on non-accrual status in April 2024. The Company is negotiating with the counterparty on potentially extending these note agreements or otherwise coming to a resolution on these outstanding balances. Total principal and interest due for both promissory notes as of March 31, 2026 and 2025 was $5.5 million and $5.5 million, respectively. As of March 31, 2026 and 2025, reserves related to these receivables were $5.5 million and $5.5 million, respectively.
Loan fee receivable and deferred upfront fees
As part of a loan participation transaction completed in March 2022, we recognized an upfront loan fee receivable with a balance of $2.9 million as of March 31, 2026 and 2025. In connection with the transaction, deferred upfront fee revenue was also recognized in Other liabilities. The loan fee receivable was placed on non-accrual status and provision for credit loss was recognized in January 2026. For the year ended March 31, 2026, $1.0 million in provision for credit losses was recognized related to this transaction, which was the loan fee receivable amount, net of the remaining unamortized deferred upfront fees.
The following table details the components of other liabilities:
(Dollars in thousands)March 31, 2026March 31, 2025
Accrued BCH Preferred A-0 guaranteed payment (Note 13)
$75,154 $56,425 
Accrued loss contingency on arbitration award, including post-judgment interest (Note 20)
67,895 — 
Accrued interest on debt due to related parties (Note 16)
30,497 19,360 
Interest commitments1,802 1,542 
Deferred tax liability (Note 15)
210 80 
Deferred upfront fees
— 2,242 
Other1,093 1,157 
Total Other liabilities$176,651 $80,806 
Interest Commitments
The primary closing conditions of the Company’s formative transactions in calendar 2017 and 2018 consisted of (i) MHT Financial entering into purchase and sale agreements with certain counterparties, which were owners of alternative asset funds to acquire their portfolios of alternative assets (collectively, the “Formative Transactions Exchange Portfolio”) in exchange for agreed upon consideration and (ii) MHT Financial’s subsequent contribution of the Formative Transactions Exchange Portfolio into the custody of certain constituent trusts (each a “Custody Trust”) of the ExAlt PlanTM (as structured for the formative transactions, the “Formative ExAlt PlanTM”) in exchange for Common Units of Ben and debt and equity securities of GWG Holdings of an agreed upon value issued to certain other constituent trusts of the Formative ExAlt PlanTM of which MHT Financial was named the sole beneficiary (such trusts, the “2017-18 Exchange Trusts”). In connection with these formative transactions and related closing conditions, the Company agreed with certain other sellers to MHT Financial
to accrue interest beginning on August 10, 2018, at a rate of 1-month London Interbank Offered Rate (“LIBOR”) plus 3.95% for thirty percent of the value of the Ben Common Units held by these 2017-18 Exchange Trusts until such time that these 2017-18 Exchange Trusts liquidate their holdings of Ben Common Units, which became Class A common shares in 2023. The Company does not have an obligation to repurchase or redeem the Ben Class A common shares held by the 2017-18 Exchange Trusts.
During the year ended March 31, 2025, the Company executed a letter agreement with one of the counterparties, which released the Company for a portion of the interest commitment. At the time of the execution of the letter agreement, the interest commitment with the counterparty was approximately $19.2 million. This resulted in the recognition of a gain that is reflected in the (gain) loss on liability resolution line item of the consolidated statement of comprehensive income (loss) for the year ended March 31, 2025.
Interest expense of $0.3 million and $2.5 million was recognized during the years ended March 31, 2026 and 2025, respectively. Accrued interest on this commitment is reflected in other liabilities. No amount of accrued interest has been paid through March 31, 2026.
Other Assets and Other Liabilities Other Assets and Other Liabilities
The following table details the components of other assets:
(Dollars in thousands)March 31, 2026March 31, 2025
Insurance reimbursable receivable, net (Note 20)
$4,122 $39,574 
Prepaid expenses1,614 2,367 
Fixed assets (Note 7)
1,082 1,732 
Distribution receivables181 348 
Promissory notes receivable
5,517 5,517 
Allowance for promissory notes receivable and other receivables(5,517)(5,517)
Loan fee receivable
2,932 2,932 
Allowance for loan fee receivable(2,932)— 
Other assets2,128 2,191 
Total Other assets, net$9,127 $49,144 
Promissory Notes Receivable
There are amounts due under two promissory note agreements for funds advanced outside of our normal liquidity arrangements with and original principal balances of $2.5 million and $0.9 million as of March 31, 2026 and 2025. Both promissory note agreements matured and were placed on non-accrual status in April 2024. The Company is negotiating with the counterparty on potentially extending these note agreements or otherwise coming to a resolution on these outstanding balances. Total principal and interest due for both promissory notes as of March 31, 2026 and 2025 was $5.5 million and $5.5 million, respectively. As of March 31, 2026 and 2025, reserves related to these receivables were $5.5 million and $5.5 million, respectively.
Loan fee receivable and deferred upfront fees
As part of a loan participation transaction completed in March 2022, we recognized an upfront loan fee receivable with a balance of $2.9 million as of March 31, 2026 and 2025. In connection with the transaction, deferred upfront fee revenue was also recognized in Other liabilities. The loan fee receivable was placed on non-accrual status and provision for credit loss was recognized in January 2026. For the year ended March 31, 2026, $1.0 million in provision for credit losses was recognized related to this transaction, which was the loan fee receivable amount, net of the remaining unamortized deferred upfront fees.
The following table details the components of other liabilities:
(Dollars in thousands)March 31, 2026March 31, 2025
Accrued BCH Preferred A-0 guaranteed payment (Note 13)
$75,154 $56,425 
Accrued loss contingency on arbitration award, including post-judgment interest (Note 20)
67,895 — 
Accrued interest on debt due to related parties (Note 16)
30,497 19,360 
Interest commitments1,802 1,542 
Deferred tax liability (Note 15)
210 80 
Deferred upfront fees
— 2,242 
Other1,093 1,157 
Total Other liabilities$176,651 $80,806 
Interest Commitments
The primary closing conditions of the Company’s formative transactions in calendar 2017 and 2018 consisted of (i) MHT Financial entering into purchase and sale agreements with certain counterparties, which were owners of alternative asset funds to acquire their portfolios of alternative assets (collectively, the “Formative Transactions Exchange Portfolio”) in exchange for agreed upon consideration and (ii) MHT Financial’s subsequent contribution of the Formative Transactions Exchange Portfolio into the custody of certain constituent trusts (each a “Custody Trust”) of the ExAlt PlanTM (as structured for the formative transactions, the “Formative ExAlt PlanTM”) in exchange for Common Units of Ben and debt and equity securities of GWG Holdings of an agreed upon value issued to certain other constituent trusts of the Formative ExAlt PlanTM of which MHT Financial was named the sole beneficiary (such trusts, the “2017-18 Exchange Trusts”). In connection with these formative transactions and related closing conditions, the Company agreed with certain other sellers to MHT Financial
to accrue interest beginning on August 10, 2018, at a rate of 1-month London Interbank Offered Rate (“LIBOR”) plus 3.95% for thirty percent of the value of the Ben Common Units held by these 2017-18 Exchange Trusts until such time that these 2017-18 Exchange Trusts liquidate their holdings of Ben Common Units, which became Class A common shares in 2023. The Company does not have an obligation to repurchase or redeem the Ben Class A common shares held by the 2017-18 Exchange Trusts.
During the year ended March 31, 2025, the Company executed a letter agreement with one of the counterparties, which released the Company for a portion of the interest commitment. At the time of the execution of the letter agreement, the interest commitment with the counterparty was approximately $19.2 million. This resulted in the recognition of a gain that is reflected in the (gain) loss on liability resolution line item of the consolidated statement of comprehensive income (loss) for the year ended March 31, 2025.
Interest expense of $0.3 million and $2.5 million was recognized during the years ended March 31, 2026 and 2025, respectively. Accrued interest on this commitment is reflected in other liabilities. No amount of accrued interest has been paid through March 31, 2026.