The U.S. bankruptcy court in Delaware on Thursday approved RCS Capital Corp.’s restructuring plan. 

RCAP, the holding company for the Cetera Financial Group of broker-dealers, filed for Chapter 11 bankruptcy in January.
 
"We're excited by this final step towards the company's successful exit from the Chapter 11 process, and its emergence as a Cetera-only organization that is privately owned, independently managed, and well-positioned for long-term success,” said David Orlofsky, chief restructuring officer of RCS Capital Corp., in a statement.
 
“We expect formal emergence from the restructuring process to follow soon, at which time Cetera will have further public comment," Orlofsky said.
 
Cetera Financial Group, the large network of independent broker-dealers strung together by RCAP, will become the primary focus of the new entity.
 
The network was acquired by real estate magnate Nicholas Schorsch in a whirlwind series of acquisitions that began in 2013, ending abruptly in 2014 when accounting irregularities surfaced at one of Schorsch's publicly traded entities.
 
A significant value of those acquisitions has since been written off and the company, facing a huge debt load, was forced to seek bankruptcy protection.
 
The accounting scandal and reorganization has left Cetera’s 9,500 advisors in limbo. Most have stayed put, but many have also been shopping around at competing firms.
 
In a related development, Robert Moore, the former president of LPL Financial, will be named non-executive chairman of the board of Cetera’s parent company upon its emergence from bankruptcy, according to a source familiar with the matter.
 
The bankruptcy process is expected to be completed either this month or next month.
 
Cetera Financial Group chief executive Larry Roth will continue in his current role.