From Barrons:
This Fund Promised Market-Beating Returns. Now It Has Filed for Bankruptcy.
Brian Casey, who was appointed NRIA’s independent manager in late April, said in a first-day motion Wednesday that the Chapter 11 petition aimed to buy the Secaucus company time to reorganize after past overspending on salaries and other financial strains.
The petition’s goal “is to provide the debtors with a breathing spell to prevent a disorderly liquidation of their estates through subscriber redemptions and to reject and/or terminate disadvantageous contracts and other arrangements,” wrote Casey, a Towson, Md.-based real-estate finance expert.
“At the conclusion of the process, the debtors plan to propose a plan of reorganization that will provide a substantial, if not full, recovery to all stakeholders and position the debtors to continue operating as a profitable mid-sized real estate firm,” he continued.
An attorney for NRIA didn’t respond to a request from Barron’s seeking comment on the petition.
NRIA’s principal offering is a real estate portfolio known as Partners Portfolio Fund, which is covered by the bankruptcy petition.
The firm has sought investors for the fund through frequent ads on national broadcast outlets such as Fox News and Bloomberg Radio that promised market-beating returns.