RCS Capital Files Bankruptcy Citing $1.39 Billion in Debts

RCS Capital Corp., the investor-services firm that once counted real estate investor Nicholas Schorsch as a director, filed for bankruptcy protection in Delaware Jan. 31 listing $1.39 billion in debts (In re RCS Capital Corp., Bankr. D. Del., 16-10223, petition filed 1/31/16).

The New York-based company, with $1.97 billion in assets, earlier this month announced plans to use the Chapter 11 process to reorganize its finances and dump more than $500 million in debt and preferred stock.

Among the company’s largest unsecured creditors listed in court papers were Wilmington Savings Fund Society, trustee for $120 million in notes, ...