Jefferies Claims George Weiss Guaranteed $100 Million Debt

As his hedge fund empire teetered on insolvency, George Weiss allegedly agreed to personally backstop debt to keep lender Jefferies Financial Group at bay. Now, Jefferies claims Weiss and his bankrupt companies owe more than $100 million.

Jefferies said in a Thursday court filing a personal guarantee from the hedge fund pioneer prevents his Weiss Multi-Strategy Advisers from using its recent bankruptcy to reverse a Feb. 12 forbearance agreement. The investment bank also published a copy of the agreement, which has become central to a dispute between the firms.

Chapter 11 gives troubled companies the power, under certain circumstances, ...