Texas Cites Charity Probe in Bid to Halt Highland Bankruptcy

Texas Attorney General Ken Paxton’s office moved to briefly pause the bankruptcy proceedings of investment firm Highland Capital Management LP while it investigates certain participants in the case as part of a civil probe surrounding charitable entities.

The office issued civil investigative demands to some people involved in the Highland bankruptcy in response to complaints involving conduct that allegedly occurred during the case, the office’s Consumer Protection Division chief told the US Bankruptcy Court for the Northern District of Texas in a letter Thursday.

Highland managed a billion-dollar publicly traded investment portfolio before it filed for Chapter 11 in 2019 ...