Chancery Finds Tilton In Contempt Over $6.5M Insurance Deal

Law360 (August 13, 2020, 7:24 PM EDT) -- Distressed debt mogul Lynn Tilton was ruled in civil contempt Thursday for ignoring a Chancery Court order requiring notice to bankrupt noteholder funds before she secured a $6.5 million payout from an insurer for legal fee expenses in a deal that also secured releases for the insurer from the claims of others covered by the insurer's policy.

Vice Chancellor Joseph R. Slights III issued the finding after teleconference arguments by attorneys for Zohar III Ltd. and affiliates, which financed some of Tilton's "Patriarch Partners" businesses. The vice chancellor said that Tilton's move disadvantaged two of Tilton's former portfolio companies, after Zohar fund arguments...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!