Distressed-Debt Investor Tilton Sued Over Dura Automotive Losses

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 ...