YSA Investments 1, a private lending and asset management firm, has thrown up the white flag in Delaware bankruptcy court, filing for Chapter 11 protection while hauling more than $500 million in debt behind it like an anchor it could no longer keep afloat.

The Numbers Behind the Filing

According to the petition filed Tuesday, YSA reported both assets and liabilities landing somewhere between $500 million and $1 billion — a range wide enough to suggest the full financial picture is still coming into focus. The Miami-based firm estimated it owes money to roughly 100 to 200 creditors, a web of obligations tangled enough to keep bankruptcy attorneys busy for months to come.

A Courtroom Battle That Set the Stage

This bankruptcy filing didn't emerge out of nowhere — it follows directly on the heels of a Delaware Chancery Court ruling issued in June, one that handed YSA the right to place disputed second mortgages on dozens of apartment properties tied to real estate investor Marc Kulick. That decision effectively closed the book on a fight that had been simmering since YSA first recorded mortgages on at least 25 properties back in October 2025, a move triggered by defaults on four loans that eventually snowballed into a debt exceeding $932 million — numbers that grew like compounding interest gone wrong.

The Judge Now Holding the Gavel

The case has landed on the docket of U.S. Bankruptcy Judge Brendan L. Shannon, who now inherits the task of untangling a financial web spun from defaulted loans, disputed mortgages and a company suddenly facing more obligations than it can comfortably shoulder.