RCS Capital cleared another hurdle toward restructuring debt-laden Cetera Financial Group when it filed its second bankruptcy on Saturday.

The filing puts the brokerage firm closer to extricating itself from the problems associated with its former executive chairman, Nicholas Schorsch.

“We are excited about this important step forward, which puts us in the home stretch to complete our transformation into a Cetera-only organization that is independent, well-capitalized and privately owned," Larry Roth, Cetera's CEO, said in a statement on Friday. "This will truly be a fresh start for Cetera."

Two months after RCS Capital filed for a pre-arranged bankruptcy, the company filed the related pre-packaged bankruptcy intended to eliminate some guarantees held by certain holding companies of the B-Ds within the Cetera network, according to a source familiar with the situation. The holding companies for the B-Ds are guarantors of RCS Capital debt.

RCS Capital plans to restructure Cetera as a standalone company. Cetera is the second-largest B-D in the nation by advisor headcount with more than 9,000 advisors across 10 different B-Ds. RCS expects to complete the restructuring process by May.

The B-Ds themselves are not involved in this Chapter 11 filing and it won't impact Cetera's advisors, advisors’ clients, employees or vendors, a source said on Friday before the bankruptcy filing. It also will not affect the firm’s advisor deferred compensation plans.

In the January pre-arranged bankruptcy filing, Cetera negotiated a restructuring plan with a majority of its first and second lien lenders.

Nearly 90% of the first and second lien holders have said they support both waves of bankruptcy filings.

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