Distressed-Debt Investor Tilton Sued Over Dura Automotive Losses – Bloomberg Law
April 21, 2022, 10:19 PM
- Trustee alleges scuttled $875 million sale harmed investors
- Tilton rejects claim, says decisions in Dura’s ‘best interest’
Distressed-debt investor Lynn Tilton mishandled the proposed sale of Dura Automotive Systems and cost investors “hundreds of millions of dollars” in losses, a bankruptcy trustee for the car-parts company said in a lawsuit.
Tilton and Dura Chief Financial Officer Kevin Grady harmed Dura “in an effort to benefit” themselves by scuttling the sale, according to a Delaware Chancery Court suit unsealed Thursday.
The complaint was filed by Dura bankruptcy trustee Jeoffrey Burtch, who alleged alleged Tilton scuttled a potential $875 million sale of Dura in 2019 because “the expected net proceeds would not have been enough to enable …
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