Ledgemont Capital Group LLC in New York has filed for a Chapter 7 bankruptcy to liquidate its assets. The case will be heard in a U.S. Bankruptcy Court in the District of Delaware. Ledgemont is best known for its joint efforts with Renaissance Capital as an underwriter for FriendFinder Networks Inc., which had a $460 million initial public offering. After the IPO, FriendFinder Networks Inc., would eventually go public in 2011 only to recognize Imperial Capital and Ladenburg Thalmann & Co as its current underwriters.
What Bankruptcy Means for Ledgemont
Despite the Chapter 7 business bankruptcy filing, Ledgemont Capital Group LLC is expected to function like normal. The Chapter 7 filing will liquidate Ledgemont’s assets, which are estimated to be somewhere between $10 million and $50 million to pay off approximately $1 to $10 million in liabilities.
Since its founding by Keith Barksdale, who had formerly worked with close associates of the Lehman Brothers, Ledgemont has employed notable people including Kerry Kittles. Kittles is a former college basketball player for Villanova University. After his collegiate career, Kittles would play for several years with both the New Jersey Nets and the Los Angeles Clippers.
Throughout the business bankruptcy process, a trustee will be appointed to handle and oversee the sale of Ledgemont’s assets. As per the Chapter 7 filing, the funds raised will be used to repay creditors existing debts in the realm of $1 to $10 million as revealed by Ledgemont.