Weiss Multi-Strategy Advisers LLC paid $28 million in employee bonuses weeks before announcing it would be shutting down, sparking a legal fight with Jefferies Financial Group, which is owed tens of millions of dollars.
WMS sued Jefferies and its investment management affiliate, Leucadia Asset Management, on Monday, alleging Jefferies used the threat of its own lawsuit over the bonuses to impose a forbearance agreement that boosted Jefferies debt over obligations owed to other creditors. WMS, which also filed Chapter 11 bankruptcy on Monday, said it is seeking to avoid the amended forbearance agreement.
The lawsuit also seeks to ...
