Highland Unit Files Bankruptcy Over Disputed Crisis-Era Fund

  • Investors, Highland fought over shuttered Crusader vehicle
  • Entity lists assets and liabilities of as much as $500 million
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Highland Capital Management LP, part of a once-high flying credit firm, filed for bankruptcy amid a long-running dispute over a fund it froze during the height of the global financial crisis.

The investment adviser unit within Highland Capital Management filed for Chapter 11 protection ahead of a potential legal judgment, the Dallas-based firm said in a statement. The judgment, which stems from a fund known as Crusader that was frozen in 2008, would exceed the assets the entity could quickly sell to meet any payment, it said.