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DALLAS, February 2, 2019 – Acis Capital Management, L.P. and Acis Capital Management GP, LLC (collectively Acis), a Securities and Exchange Commission (SEC)-registered investment adviser and collateralized loan obligation (CLO) manager with approximately $2 billion in assets under management, announced today that the United States Bankruptcy Court in Dallas has confirmed Acis’ Chapter 11 restructuring plan. Prior to bankruptcy, Acis was owned and controlled by Highland Capital Management, L.P. and its affiliates (collectively, Highland).

In 2018, Joshua N. Terry, former head of Highland’s structured products team and founder/former partner in Acis, and the holder of an $8 million judgment, successfully initiated and prosecuted an involuntary bankruptcy against Acis. The case was subsequently converted to Chapter 11.

Upon emergence from bankruptcy, Acis will be owned and operated by Mr. Terry. Acis’ plan of reorganization proposes to pay creditors in full. Brigade Capital Management, L.P., a global investment management firm with over $20 billion in assets under management, is currently acting as sub-adviser for the Acis CLOs. Acis will also retain substantial litigation claims against Highland, its affiliates and principals, James Dondero and Mark Okada.

“Today’s confirmation marks the beginning of an energizing new chapter at Acis as an independent portfolio manager,” said Robin Phelan, Chapter 11 Trustee for Acis. “Acis will be back in the capable hands of Josh Terry, who I anticipate will generate similar results as he did during his first tenure,” Mr. Phelan commented.

“At the outset of this bankruptcy case, it was not clear whether creditors would have a reorganized company to look to for payment. Acis can now pay its creditors and provide meaningful returns for investors,” said Jeff Prostok of Forshey Prostok LLP.

“We are pleased the bankruptcy court saw a potential future for this company,” said Rakhee Patel of Winstead PC. “We believe this case is a prime example of how the bankruptcy process can and should work for aggrieved creditors.” Robin Phelan of PHELANLAW served as the Chapter 11 Trustee of Acis. Jeff Prostok, Suki Rosen, and Laurie Rea of Forshey Prostok, LLP served as the Trustee’s bankruptcy counsel and Rakhee Patel, Joe Wielebinski, Annmarie Chiarello and Phillip Lamberson of Winstead PC served as the Trustee’s special counsel. Richard Klein of Miller Buckfire & Co. and Zachary Alpern of Stifel, Nicolaus & Co., Inc. served as the Trustee’s financial advisor.

Joshua N. Terry is represented by Brian P. Shaw of Rogge Dunn Group, P.C.

About Acis Capital Management, L.P.

Acis Capital Management, L.P. is a Dallas, Texas based SEC-registered investment adviser with approximately $2 billion in assets under management.