Highland Capital Management LP Chief Executive Officer James Dondero testified in a divorce proceeding that he’s insolvent, while his lawyer said his client’s net worth is negative $50 million, according to a Bloomberg report.
Dondero, 49, told Texas state court Judge David Lopez in Dallas today that the 2008 financial crisis took his debt- investing firm “to a state of insolvency and we’ve been juggling liquidity since that.” Highland Capital assets under management fell to $23 billion by Jan. 1 from $39 billion at the end of 2007.
“The last three, four years have been negative to the tune of hundreds of millions of dollars,” Dondero said. The money manager said his annual income is “a million, two.”
Highland is the largest manager of collateralized loan obligations in the U.S. by dollar amount, according to Moody’s Investors Service. In 2008, the Dallas-based firm had to suspend investors’ withdrawals from two hedge funds as a result of the credit crisis, resulting in litigation with investors and banks…
Find out more at http://www.bloomberg.com/news/2012-03-28/highland-capital-chief-tells-divorce-judge-he-s-insolvent.html
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