RCS Capital Corp., the investor-services firm that once counted real estate investor Nicholas Schorsch as a director, filed for bankruptcy protection in Delaware Sunday listing $1.39 billion in debts.

The New York-based company, with $1.97 billion in assets, earlier this month announced plans to use the Chapter 11 process to reorganize its finances and dump more than $500 million in debt and preferred stock.

Among the company’s largest unsecured creditors listed in court papers were Wilmington Savings Fund Society, trustee for $120 million in notes, and Proskauer Rose LLP of New York, owed $4.04 million for legal services.

RCS Capital is the holding company of Cetera Financial Holdings Inc., which comprises 10 firms that provide financial advice to investors. RCS’s market value has fallen by about $600 million since American Realty Capital Properties Inc., a Schorsch real estate investment trust, disclosed in 2014 that it had accounting errors which were intentionally concealed.

Schorsch resigned from the boards of RCS, ARCP and about a dozen other companies in 2014.

RCS said in early January that it would use $150 million from a group of lenders to restructure its finances. The restructuring was pre-approved by certain key stakeholders, the company said in the Jan. 4 statement.

Acquisition Debt

Chief Restructuring Officer David Orlofsky said in court papers that debt incurred in “significant acquisitions” costing more than $1 billion, and elusive expected synergies, “industry headwinds,” and a “low interest rate environment” in part contributed to the company’s financial troubles.

The restructuring will “focus on its retail advice division, Cetera Financial Group, one of the nation’s leading networks of independent broker-dealer firms,” according to the statement.

The plan is to eliminate the common and preferred equity of RCS Capital and include a new proposed equity retention program for Cetera financial advisers and key employees. Following the restructuring, almost all of the equity will be owned by the current first- and second-lien lenders, the company said.

The case is In re RCS Capital Corp., 16-10223, U.S. Bankruptcy Court, District of Delaware.