Jefferies Says Weiss Deal With Wife Doesn’t Meet Legal Standard

Jefferies Financial Group Inc. said a proposed settlement between bankrupt hedge fund manager George Allen Weiss and his wife fails to meet the legal requirements for court approval after the firm confidentially reviewed their prenuptial agreement.

Weiss has asked the US Bankruptcy Court for the Southern District of Florida to approve an $8 million deal with his wife, Patricia Bravo-Weiss, after failing to pay her $800,000 each year on their anniversary pursuant to the 2007 agreement.

But approving the promised annual payments to Weiss’ wife as a domestic “support obligation” would deprive Jefferies and other creditors because any such claims ...