Tilton Wins Zohar Chancery Suit Over $6.5M Insurance Award

Law360 (April 7, 2021, 6:12 PM EDT) -- Business turnaround innovator Lynn Tilton was ordered to pay a sanction of legal fees in Chancery Court on Wednesday for ignoring an order to disclose pre-deal negotiations for an insurance payout, but nevertheless won her $6.5 million claim for the coverage.

Vice Chancellor Joseph R. Slights III's ruling marked a partial win for Tilton in a multiyear, multicourt war with Zohar III Ltd. funds and affiliates — bankrupt noteholders and investors that for years staked Tilton's vision for a now-bankrupt collateralized debt rehab program for herds of promising but cash-strapped businesses.

"I'm going to award the Zohar funds legal fees, but decline...

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