Reported 6 months ago
Jefferies Financial Group is demanding that Weiss Multi-Strategy Advisers claw back around $30 million in bonus payouts made to employees just before filing for bankruptcy. Jefferies claims the hedge fund wrongly paid out bonuses when insolvent, with the cash meant for debt repayment. Weiss argues the bonuses were standard compensation and necessary during rescue deal negotiations with Millennium Management. If Weiss doesn't recover the funds, Jefferies may seek to retrieve the money with court permission. Jefferies also requested the removal of current executives, alleging bad faith in filing for Chapter 11 bankruptcy. The case is ongoing in the US Bankruptcy Court for the Southern District of New York.
Source: YAHOO