Weiss Multi-Strategy Advisers LLC

CourtUnited States Bankruptcy Court, S.D. New York
DecidedAugust 25, 2025
Docket24-10743
StatusUnknown

This text of Weiss Multi-Strategy Advisers LLC (Weiss Multi-Strategy Advisers LLC) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weiss Multi-Strategy Advisers LLC, (N.Y. 2025).

Opinion

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK

In re: NOT FOR PUBLICATION

WEISS MULTI-STRATEGY ADVISERS Case No. 24-10743 (MG) LLC, et al., Chapter 11 Debtors.

MEMORNDUM OPINION AND ORDER DENYING MOTION TO TRANFER VENUE OF GEORGE ALLEN WEISS’S BANKRUPTCY CASE TO THIS COURT A P P E A R A N C E S: HERBERT SMITH FREEHILLS NEW YORK LLP Attorneys for Jefferies Strategic Investments, LLC and Leucadia Asset Management Holdings LLC 200 Park Avenue New York, New York 10166 By: Scott S. Balber, Esq. Michael P. Jones, Esq. Daniel Gomez, Esq. VENABLE LLP Attorneys for George Allen Weiss 801 Brickell Avenue, Suite 1500 Miami, Florida 33131 By: Paul J. Battista, Esq. Mariaelena Gayo-Guitian, Esq. Eric D. Jacobs, Esq.

MARTIN GLENN CHIEF UNITED STATES BANKRUPTCY JUDGE Pending before the Court is a motion (“Motion,” ECF Doc. # 394), filed by Jefferies Strategic Investments LLC and Leucadia Asset Management Holdings LLC (together, “Jefferies Entities”), to transfer the venue of George Allen Weiss’s (“Weiss”) bankruptcy proceeding to this Court, where the chapter 11 cases of Weiss Multi-Strategy Advisers, LLC and its related debtors (together, “Weiss Companies”) are pending. Weiss filed an objection to the Motion (“Objection,” ECF Doc. # 409), and the Movants filed a reply (“Reply,” ECF Doc. # 415). For the following reasons, the Motion is DENIED. I. BACKGROUND A. Background The facts, unless otherwise noted, are drawn from the Motion and are supported by the exhibits and declarations attached to the Motion.

Weiss is the Chairman and Chief Executive Officer of WMSA, an investment advisory entity which manages the Weiss Companies’ funds. (Motion ¶ 8.) Separately, through his family trusts, Weiss owns a controlling stake in the Weiss Companies’ parent entity, GWA. (Id.) From 2018 to 2022, the Weiss Companies entered into several agreements with the Jefferies Entities, including a “Strategic Relationship Agreement” and a series of “Note Purchase Agreements” pursuant to which JSI acquired $53 million in notes (the “Notes”) issued by GWA and WMSA. (Id. ¶ 9.) On December 21, 2023, JSI delivered a Notice of Optional Redemption under the Notes. (Id. ¶ 10.) As a result, GWA was required to pay to JSI $54,223,110, comprising all outstanding aggregate principal and interest on the Notes, on December 31, 2023;

GWA did not pay. (Id.) Accordingly, as of December 31, 2023, JSI had the right to commence litigation against GWA to compel it to repay the amounts that were owed under the Notes. (Id.) After a series of further negotiations, Weiss and his counsel negotiated and signed—in his personal capacity and on behalf of all the Weiss Companies—a forbearance agreement (the “Forbearance Agreement”). (Id. ¶ 15.) Weiss agreed to a personal guarantee of the Weiss Companies’ performance under the Forbearance Agreement, which provides as follows: Weiss unconditionally and irrevocably personally guarantees to the Jefferies Entities the accuracy of the representations made by, and the performance of the agreements of, the [Weiss Companies] hereunder. Weiss further agrees that he shall take all actions within his control, including by exercising all of his voting, governance, management and other rights and powers with respect to each of the other Weiss Parties, any of their subsidiaries and any of his personal or his family’s trusts to cause such persons to comply with the terms of this Agreement.

(Id. ¶ 16.) The Forbearance Agreement also contained a mandatory and exclusive forum selection clause: This Agreement shall be governed by and construed and administered in accordance with the internal substantive laws of the State of New York without regard to principles of conflict of laws. Each party agrees that any dispute arising out of this Agreement shall be subject to the exclusive jurisdiction of the New York courts and irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement in (i) any state court in the State of New York or (ii) any federal court in the State of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

(Id. ¶ 18.) In April and June 2024, the Weiss Companies filed voluntary chapter 11 bankruptcy cases in this Court. (Id. ¶ 19.) The Weiss Companies also filed an adversary proceeding against the Jefferies Entities which sought, in part, to avoid the Forbearance Agreement as a fraudulent transfer. (Id.) The Jefferies Entities moved to dismiss, arguing, in relevant part, that the guarantees contained in the Forbearance Agreement could not be avoided as fraudulent transfers because they were made “on account of an antecedent debt,” and were therefore made for “reasonably equivalent value.” (Id. ¶ 20.) The court issued an opinion and order granting in part Jefferies’ motion to dismiss; in relevant part, the Court dismissed the Weiss Companies’ claims to avoid the “guarantees granted under the . . . Forbearance Agreement” as a fraudulent conveyance, holding that the “plain language” of the Forbearance Agreement precluded any such claim, given that Weiss and the Weiss Companies “explicitly agreed that the . . . the guarantees provided under the 2024 Forbearance Agreement constitute ‘reasonably equivalent value’ for the benefit the [Weiss Companies] are receiving.” (Id. ¶ 23 (citing GWA, LLC v. Jefferies Strategic Invs., LLC (In re Weiss Multi-Strategy Advisers LLC), 664 B.R. 492, 535–36 (Bankr. S.D.N.Y. 2024)).) The Court further highlighted that the “the [] Forbearance Agreement, including the . . . guarantees, were ‘for or on account of antecedent debts owed by certain of the [Weiss Companies] to the [Jefferies Entities].” (Id.) The Court did not decide the issue whether George Weiss’s personal guarantee was an avoidable transfer.

The Jefferies Entities separately brought suit to enforce Weiss’s personal guarantee in the Supreme Court of the State of New York. (Id. ¶ 24.) Weiss removed that case to the United States District Court for the Southern District of New York, and then moved to dismiss the claims against him, arguing that Weiss’s guarantee was not a “payment” guarantee. (Id. ¶ 25.) The district court denied Weiss’s motion to dismiss and directed the parties to file motions for summary judgment. (Id.) In his motion for summary judgment, Weiss argued that the Forbearance Agreement, and the guarantees contained therein, was unenforceable. (Id. ¶ 26.) On March 12, 2025, the United States District Court for the Southern District of New York issued an opinion and order granting the Jefferies Entities’ motion for summary judgment in its

entirety and denying Weiss’s competing motion. (Id. ¶ 27 (citing Jefferies Strategic Invs., LLC v. Weiss, No. 24 CIV. 4369 (AKH), 2025 WL 786578 (S.D.N.Y. Mar. 12, 2025)).) The Clerk issued a judgment in favor of the Jefferies Entities, but without specifying the exact amount owed to the Jefferies Entities; the Clerk eventually issued a corrected judgment specifying that the Jefferies Entities are owed $113,493,250.00. (Id. ¶ 30.) Weiss filed a motion for reconsideration, which was rejected. (Id. ¶¶ 28–29.) Weiss also appealed the district court’s decision to the Second Circuit. (Id. ¶ 28.) Just over two weeks after the corrected judgment was issued, on June 4, 2025, Weiss filed a voluntary petition for chapter 11 relief in the United States Bankruptcy Court for the Southern District of Florida. (Id. ¶ 31.) In his chapter 11 petition, Weiss acknowledges that the Weiss Companies’ chapter 11 cases are those of his “[a]ffiliate[s].” (Id. ¶ 31; see also id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
Weiss Multi-Strategy Advisers LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weiss-multi-strategy-advisers-llc-nysb-2025.