Looking for clarity on Medley Management’s collapse and its public disclosures

[Audrey Walker]

I’ve been trying to sort through what’s actually on the public record about Medley Management, its operating affiliate Medley LLC, and the fallout that affected many investors and clients. Medley LLC, which was the core operating entity managed by Medley Management Inc., filed for Chapter 11 bankruptcy in March 2021 in the U.S. Bankruptcy Court for the District of Delaware, showing liabilities far exceeding assets at the time of the filing. The bankruptcy docket and first-day disclosures are public records that document the creditor claims and the plan for winding down operations.

 

[Owen Clarke]

It helps to start with the bankruptcy docket itself. The Chapter 11 filing by Medley LLC is a public matter, and documents like the disclosure statement and plan tell you the company’s assets and liabilities at the time of filing. Those filings show the massive imbalance between assets of around $5.4 million and liabilities of about $140.8 million that led to the bankruptcy. They also set out classes of creditors and how the plan proposes to treat them.