Highland Capital Management Chapter 11 case moved to Texas court

By Caroline Salls

Pittsburgh, Dec. 5 – Highland Capital Management, LP’s (HCMLP) Chapter 11 case was transferred to the U.S. Bankruptcy Court for the Northern District of Texas on Wednesday by the U.S. Bankruptcy Court for the District of Delaware.

The official committee of unsecured creditors appointed for Highland’s case asked the Delaware court to transfer the case to Texas on Nov. 1.

In its motion, the committee said HCMLP has only one location in the United States, its Dallas headquarters.

“In fact, the debtor’s headquarters sit less than two miles from the United States Bankruptcy Court for the Northern District of Texas, making the venue clearly more convenient for the debtor and its management than Delaware,” the motion said.

In addition, the committee said a substantial number of HCMLP’s creditors, including several of the top 20 unsecured creditors and committee members, are concentrated in Texas or the Midwest, and nearly all of the professionals active in the case are concentrated in Texas, Chicago or Los Angeles.

“Transferring venue from Wilmington, Del., to Dallas, Texas would result in greater efficiencies and significant cost savings for the debtor’s estate,” the motion said.

The creditor group also said the Texas court is already very familiar with the company’s principals and complex organizational structure, as the involuntary Chapter 11 cases of HCMLP’s former affiliates and current committee members Acis Capital Management, LP and Acis Capital Management GP, LP are pending in the Dallas court.

HCMLP is a Securities and Exchange Commission-registered investment adviser on Dallas-based Highland Capital Management’s global alternative investment platform. The company filed bankruptcy on Oct. 16 under Chapter 11 case number 19-12239. The case number in the Texas court is 19-34054.

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