💥New Chapter 11 Bankruptcy - Weiss Multi-Strategy Advisers LLC💥

Asset manager embroiled in battle with Jefferies.

On April 29 2024, NY-based Weiss Multi-Strategy Advisers LLC (“WMSA”) and three affiliates (collectively, the “debtors”) filed chapter 11 bankruptcy cases in the Southern District of New York (Judge Glenn). Klestadt Winters Jureller Southard & Stevens LLP (Tracy Klestadt, John Jureller Jr., Lauren Kiss, Stephanie Sweeney) are representing the debtors. Affiliates of Jefferies Strategic Investments LLC, the largest unsecured creditor, are represented by Herbert Smith Freehills (Michael Jones, Scott Balber). 

An asset manager! What happened? A super-concentrated long in an asset class that went the other way (Treasuries)? A GameStop Corp. ($GME) short? Alas, no. This case is all about competing charges of fraudulent and/or preferential transfers of assets between one-time partners. Jefferies alleges the filing is a “bad-faith effort” by the debtors to gain leverage in their dispute with the bank. The debtors claim they were forced to sign a forbearance that secured Jefferies’ previously unsecured claims. An initial case conference is scheduled for May 28 at 2 pm EDT and a creditors’ meeting on June 12.