RCS Capital Corp, a brokerage firm tied to real-estate investor Nicholas Schorsch, filed for chapter 11 protection to reduce debt and as per the plan its key lenders will assume control of the company, Reuters reported today. The company listed total assets of $1.98 billion and debts of $1.39 billion, on a consolidated basis, in its bankruptcy filing. RCS Capital said in early January that it planned a voluntary bankruptcy filing to improve its capital structure by eliminating certain non-core assets and liabilities and to focus on its retail advice division, Cetera Financial Group. The company also reached an agreement at that time with its key stakeholders for a new investment of $150 million in Cetera. RCS Capital, however, said that Cetera's current employees, advisers and trade vendors will not be affected by its bankruptcy.
