Highland Unit Files Bankruptcy Over Disputed Crisis-Era Fund (3)

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.

Highland was founded in 1993 by James Dondero and Mark Okada. ...