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Lynn Tilton Loses Bid to Keep Planned Asset Sale on Hold

  • Tilton contends sale was structured to benefit insurer
  • Collateral sale to go ahead while Patriarch CEO sues trustee
Updated on

Patriarch Partners Founder Lynn Tilton can’t block a planned sale of assets in one of her former investment funds, a deal she claims was structured to benefit insurer MBIA Inc.

U.S. District Judge Jed Rakoff on Tuesday denied Tilton’s request to bar the sale of collateral in the Zohar I distressed loan fund pending the outcome of her lawsuit against the trustee of the fund, U.S. Bank NA, and MBIA.