Highland Prevails In Suit Seeking Payment of Promissory Notes

Highland Capital Management LP persuaded a federal appeals court Monday that its former chief executive James Dondero and Highland subsidiaries must make good on loans Highland provided to them when Dondero ran the company.

Dondero and the subsidiaries failed to show there are any genuine disputed fact issues for a trial, the US Court of Appeals for the Fifth Circuit said. The court affirmed a district court grant of summary judgment to Highland.

Highland, a Dallas-based investment firm, loaned tens of millions of dollars to corporate affiliates managed by Dondero, the court said, to help them make investments. The ...