The Phoenix Fund LLC, a Puerto Rico-based private equity firm, sought bankruptcy protection after a financial regulator called for liquidation under a receivership.
The firm reported more than $400 million in liabilities against nearly $566 million in assets in a Chapter 11 petition filed Monday in the US Bankruptcy Court for the District of Puerto Rico.
The bankruptcy follows a series of lawsuits alleging systemic breaches of contract, securities fraud, and fraudulent misrepresentation.
The fund invests equity and debt into companies based in Puerto Rico and abroad and “is designed for tax efficient investors who can take advantage of the ...