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Tilton Still Must Pay $40 Million to Bankrupt Ambulance Company

Sept. 30, 2021, 6:12 PM

Distressed-debt investor Lynn Tilton and her private equity firm lost their bid to overturn a nearly $40 million bankruptcy court judgment for foreclosing on the assets of an insolvent ambulance company’s assets for less than they were worth.

Tilton, who controlled ambulance service provider TransCare Corp., breached her fiduciary duty by causing private equity firm Patriarch Partners Agency Services LLC to conduct the foreclosure while TransCare was in dire financial straits, Judge Lewis A. Kaplan of the U.S. District Court for the Southern District of New York ruled Wednesday.

Tilton kept Credit Suisse Group AG and other TransCare investors in ...