RCS Capital Files Bankruptcy Citing $1.39 Billion in Debts

  • Firm's board is one of many Nicholas Schorsch quit in 2014
  • Company said it will borrow $150 million for restructuring
Lock
This article is for subscribers only.

RCS Capital Corp., the investor-services firm that once counted real estate investor Nicholas Schorsch as a director, filed for bankruptcy protection in Delaware Sunday listing $1.39 billion in debts.

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