Privately-held Zohar III and five affiliated Debtors (collectively, “Zohar Funds”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-10512.
The Company, which operates as a loan obligator, is represented by Michael R. Nestor of Young Conaway Stargatt & Taylor. Lynn Tilton, the sole director of Zohar Funds, states that the filing was initiated in order to “monetize their valuable assets and pay off all allowed claims in full.”
A corporate release explains, “Today’s filing will have no effect on the operations of the Portfolio Companies to whom the Zohar Funds have made senior secured loans. Business will continue as usual at the Portfolio Companies during the pendency of the bankruptcy, as this filing does not in any way trigger any defaults on Portfolio Company loans or business contracts or otherwise disrupt the companies’ operations.” The Chapter 11 filing will stay certain litigation matters. Zohar Funds concurrently announced the appointment of Mark Kirschner of Goldin Associates as C.R.O. Zohar III’s Chapter 11 petition indicates assets greater than $1 billion.
Read more Zohar Funds bankruptcy news.