| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Z > Headlines for Zohar III, Corp. > News item |
Zohar secures approval of Dura Automotive venue transfer stipulation
By Caroline Salls
Pittsburgh, Nov. 1 – Zohar III, Corp. obtained court approval of a stipulation under which Dura Automotive Systems, LLC agreed to the transfer of its Chapter 11 proceedings to the U.S. Bankruptcy Court for the District of Delaware from the U.S. Bankruptcy Court for the Middle District of Tennessee.
Under the stipulation, the case will be deemed transferred as of 12:01 a.m. ET on Nov. 8.
The Tennessee court will have the authority to enter orders at a hearing scheduled for Nov. 5.
As previously reported, Zohar asked that the cases be moved to Delaware, and Dura initially objected to that request.
Zohar said in its venue transfer motion that the Zohar debtors have substantial interests in the Dura debtors and hold $105 million principal amount of secured term loan debt in and have an indirect interest in the majority of the equity in the Dura debtors, “rendering them (among other bases) affiliates of the Zohar debtors.”
In addition, Zohar said the Delaware court approved a settlement agreement on May 21, 2018 under which the Zohar debtors, which are also affiliated with Tilton, agreed that Lynn Tilton and Zohar’s chief restructuring officer would conduct a monetization process to sell various portfolio companies in which Zohar has an interest. This includes the Dura debtors, according to the venue transfer motion.
Zohar said Tilton “orchestrated to put the Dura debtors, which Ms. Tilton has referred to as a ‘crown jewel’ portfolio company, into bankruptcy with the goal of providing DIP financing and an expedited 363 credit bid sale to herself.”
Dura is an Auburn Hills, Mich.-based automotive parts maker. The company filed bankruptcy on Oct. 17 under Chapter 11 case number 19-06741.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.