Medley files for Chapter 11

Medley LLC filed a voluntary case under Chapter 11 of Title 11 of the U.S. Bankruptcy Court of the District of Delaware.

The company will continue to operate its business as debtor-in-possession under the jurisdiction of the court and in accordance with the court's applicable provisions and orders.

The commencement of the Chapter 11 case constitutes an event of default that accelerates the obligations under Medley's 7.25% senior notes due 2024 and 6.875% senior notes due 2026.

In February, Medley had disclosed it did not pay about $1.3 million in quarterly interest payment due Feb. 1 for its notes due 2024 and the $900,000 in quarterly interest due Feb. 16 for its notes due 2026.

To ensure its ability to continue operating in the ordinary course of business, Medley has filed motions seeking a variety of "first day" relief, including the authority to continue utilizing and maintaining its existing cash management system.

In connection with the case, Medley also filed a proposed plan of reorganization and a proposed disclosure statement. The proposed plan summarizes the treatment Medley's stockholders would receive, subject to confirmation of the court.

Medley LLC is the only entity on the Medley investment platform that has filed for Chapter 11 protection.

Medley Management Inc. and the other affiliated adviser entities on the Medley platform are not filing any bankruptcy petitions. Furthermore, business operations across the Medley platform are continuing without interruption.

Kurtzman Carson Consultants LLC is acting as Medley's noticing and claims agent.