(Bloomberg) -- George Weiss has offered to help fund the ongoing wind-down of his eponymous investment firm, which filed for bankruptcy earlier this year.
Weiss Multi-Strategy Advisers said in court papers Tuesday that its founder has agreed to provide a $1 million credit line to pay operating expenses and cover payroll for its remaining employees and professionals. The financing must be approved by a New York judge.
The hedge fund filed for Chapter 11 in April after announcing it would shut down and return cash. Weiss is also involved in a legal dispute with creditor Jefferies Financial Group over its decision to pay about $30 million in employee bonuses weeks before shutting down. Jefferies has also alleged George Weiss personally guaranteed debt, which he has denied.
A lawyer for the firm said in Tuesday’s court filing that they turned to George Weiss because other potential financiers were not interested in lending, or offered higher-interest debt. He is offering a line of credit for up to $1 million at 5% annual interest, according to court documents.
Weiss controller Michele Lanzoni said the hedge fund has assets but they’re going to take more time to monetize. In the meantime, the company needs a cash injection to “wind down responsibly for the benefit of all creditors,” Lanzoni said.
Those assets include rights to Portuguese bonds that a Weiss subsidiary has valued at about $5 million, though the debt is subject to a legal dispute and ultimate recovery on the bonds is uncertain, according to court documents.
The case is Weiss Multi-Strategy Advisers LLC, 24-10743, US Bankruptcy Court for the Southern District of New York (Manhattan).
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