The distressed-asset specialist Wilshire Financial Services Group said late Wednesday that it had filed for bankruptcy protection.

The company said that the holders of its notes approved a plan giving them a 99.5% equity stake in the reorganized company; the balance could go to current stockholders. Bankers Trust Corp. is the trustee for Wilshire's $184 million in notes.

Trading of the company's stock was halted Wednesday morning, following a request for additional information by Nasdaq.

The company has also arranged for debtor-in-possession funding from an undisclosed lender and expects to make all payments to creditors and lenders. "By mid-April, we will have a stable capital base, and then we can focus on our core strengths," said chief executive Andrew Weiderhorn.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.