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Highland Capital Ex-CEO Sanctioned for Violating Stay-Away Order

June 8, 2021, 8:14 PM

Highland Capital Management LP won a $450,000 award against its former CEO James Dondero for violating a court order to stay away from the bankrupt investment company’s affairs.

Highland’s Chapter 11 case, pending for almost two years, has been marked by the company’s falling out and heated battle with Dondero over issues regarding management and bankruptcy proceedings.

The case had become “very much like a nasty divorce,” Judge Stacey G. C. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas said in an order Monday.

Jernigan also ordered Dondero to pay an additional $100,000 for every unsuccessful ...