GSC Group and Six Affiliates File For Bankruptcy Protection

(Reuters) – Privately held alternative asset manager GSC Group Inc, a former unit of Travelers Group Inc, filed for bankruptcy in a Manhattan court and said it plans to sell all its assets.

The company was founded in 1994 by Alfred Eckert as a subsidiary of Travelers to invest in private equity transactions but became independent in 1998 after Travelers Group merged with Citicorp.

“As of March 31, 2010, GSC had approximately $8.4 billion of assets under management (AUM) in approximately 28 separately managed investment funds,” GSC said in a court filing late on Tuesday.

GSC said it suffered significant losses during the financial crisis as asset values depreciated considerably and credit markets froze.

The company, which had $28 billion of AUM at its peak, said the falling asset values and liquidity constraints also significantly strained its relationships with investors.

GSC has estimated assets in the $1-$10 million range and liabilities in the $100-$500 million range. The Chapter 11 petition included six affiliates of the company.

The case is In re: GSC Group Inc, U.S. Bankruptcy Court, Southern District of New York (Manhattan), No: 10-14653.

(Reporting by Santosh Nadgir in Bangalore; Editing by Jarshad Kakkrakandy)