Lynn Tilton’s Patriarch Accused of Keeping Cash From Investors

June 23, 2021, 2:20 PM

The funding company behind Lynn Tilton’s distressed debt empire accused Patriarch Partners, the private equity firm she founded, of withholding money it got from foreclosing on defunct textile maker Galey & Lord.

During a court hearing Tuesday, lawyers for the bankrupt Zohar III Corp. which Tilton also founded, said Patriarch affiliates may be wrongly hanging onto millions in cash collected after selling most of Galey’s assets.

Zohar is a collateralized debt fund that is controlled by investors who have been feuding with Tilton for several years.

Lynn Tilton
Photographer: Adam Jeffery/CNBC/NBCU Photo Bank/Getty Images

Galey was once a Tilton portfolio company that owed Patriarch and ...

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