(Bloomberg) — Hedge fund founder George Weiss has filed personal bankruptcy months after a federal judge ruled he’s liable for more than $100 million in debt his eponymous firm owes Jefferies Financial Group Inc.
Weiss sought court protection Wednesday in Florida, listing assets and liabilities each of between $100 million to $500 million on a Chapter 11 petition. Besides the Jefferies debt, Weiss’ bankruptcy petition also listed a $180 million claim from the Internal Revenue Service, which he disputes.
The bankruptcy filing immediately halts collection actions Jefferies has brought against Weiss, who follows his hedge fund, Weiss Multi-Strategy Advisers, in filing for Chapter 11.
Weiss filed bankruptcy “in order to responsibly manage creditors and address several significant legal proceedings in an orderly and respectful fashion,” his spokesperson said in a statement. The filing “will ensure a fair and orderly resolution of debts” and Weiss is working with parties to address issues “transparently and in good faith.”
Jefferies is a major creditor of Weiss Multi-Strategy Advisers and has alleged Weiss and his hedge fund owe $52.4 million under a strategic relationship agreement, $43 million in notes as well as attorneys’ fees and other costs, according to court documents.
Meanwhile, Weiss brought a $250 million defamation suit against Jefferies earlier this year. He has alleged Jefferies threatened to ruin his career to force him to pay his firms’ debt, an allegation Jefferies has denied.
The petition also lists a judgment that ruled Weiss owes Jefferies, one of his top unsecured creditors, $113.5 million — a debt he disputes.
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