Tilton, Patriarch Owe $42 Million to Bankrupt Ambulance Company

Distressed-debt investor Lynn Tilton and her private equity company should pay up to about $42 million to the bankruptcy trustee for ambulance services provider TransCare Corp. to compensate for an “unfair, tainted process” that wound up stripping TransCare’s business, a bankruptcy judge recommended.

The decision Monday from Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York needs the approval of a federal district court to become final.

The case, filed in February 2018, relates to Tilton’s plan to have her private equity fund, Patriarch Partners Agency Services LLC, foreclose on the assets of ...