Steve Hilbert has put his private-equity management company into bankruptcy, the latest fallout from his feud with John Menard, the billionaire who provided nearly $500 million for Hilbert and his Indianapolis-based team to invest.
MH Equity Managing Member LLC filed for Chapter 11 bankruptcy protection in Indianapolis on Wednesday. The filing lists assets of $10 million and liabilities of $1.5 million.
However, that doesn’t include MH Equity Managing Member’s potential exposure under a lawsuit Menard filed in Wisconsin that seeks millions of dollars in damages from the Hilbert company. The bankruptcy filing stays that lawsuit.
MH Equity Managing Member holds a 20-percent interest in at least one of the Menard-funded MH Private Equity funds. Steve Hilbert is the president and CEO, while his wife, Tomisue, is the managing member.
Menard won a preliminary injunction in a Wisconsin court on Feb. 19, removing Steve Hilbert as CEO of the funds. The founder of the Menards hardware store chain said he removed Hilbert because the funds’ investments performed disasterously.
Hilbert and his wife contend he took the action as retribution after Tomisue spurned his sexual advances.