Distressed-Debt Investor Tilton Sued Over Dura Automotive Losses – Bloomberg Law

April 22, 2022 by No Comments

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 …

Jef Feeley

Bloomberg News

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Source: https://news.bloomberglaw.com/bankruptcy-law/distressed-debt-investor-tilton-sued-over-dura-automotive-losses

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