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Lynn Tilton Loses Appeal Over Control of Cosmetics Company Stila

Oct. 13, 2022, 5:54 PM

A bankrupt investment fund founded by distressed-debt investor Lynn Tilton properly removed her from the helm of cosmetics company Stila Styles LLC, Delaware’s top court ruled Thursday.

The state’s justices found for a bankruptcy-related affiliate of the fund, Zohar III Ltd., in a brief decision upholding a ruling by former Vice Chancellor Joseph R. Slights III, one of his last before stepping down from Delaware’s Chancery Court.

Slights held May 31 that the “diva of distressed” breached Stila’s operating agreement when she unilaterally refinanced it on terms purporting to give a Tilton affiliate the sole right to appoint the company’s ...