Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Highland Bankruptcy Plan Approved, Shielding Unit from Ex-CEO (1)

Feb. 8, 2021, 7:34 PMUpdated: Feb. 8, 2021, 9:31 PM

Highland Capital Management LP won court approval of its Chapter 11 plan, retaining provisions to prevent co-founder and former CEO James Dondero from meddling in the bankrupt unit’s restructuring efforts.

The plan approved Monday by Judge Stacey G. C. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas includes exculpation provisions to protect the reorganized firm and its officers and employees from liability for actions they take to carry out the restructuring.

A separate “gatekeeper” provision will allow the bankruptcy court to vet the validity of any future litigation against them.

Confirmation allows Highland to wind down ...