Private Debt Firm Medley Puts Unit in Chapter 11 Bankruptcy (1)

A unit of alternative asset management firm Medley Management Inc., which focuses on loans to private middle-market companies in the U.S., filed for bankruptcy with plans to repay its own debt with new shares of stock.

Medley LLC filed for Chapter 11 in Delaware late Sunday, estimating its liabilities at $100 million to $500 million and assets of no more than $10 million. The New York-based company attracts retail and institutional investors looking for yield by offering senior secured loans to smaller U.S. companies, typically with revenue up to $1 billion.

Business development companies similar to Medley were hammered ...