Lynn Tilton is counting down to a huge deadline
Getty Images/ Alberto Rodriguez
She has until November 20 to avoid default on one of the firm's credit funds, according to an interview she gave to Bloomberg Television on Tuesday November 10.
Tilton is being sued over the fund, called Zohar I, by investors who claim they were misled by Tilton about the fund's accounting standards.
In the interview, Tilton said she owns two-thirds of the notes in Zohar I, which invested in companies controlled by Patriarch Partners. The remaining portion of the notes are owned by MBIA, with which Tilton must negotiate to restructure the debt. Failure to do so, will cause a default.
"I'm surprised that we're at this point where the maturity will come," Tilton said in her interview.
The Zohar notes are at the center of a Securities and Exchange Commission case that accuses Tilton of fraud.
Specifically, the key issue is whether or not her financial statements pertaining to the Zohar funds (there are three: Zohar I, II and III) were prepared in accordance with generally accepted accounting principles.
In a federal filing at the time she raised the funds, Tilton said they were prepared in accordance with GAAP. But, a lawsuit from the investors - which is separate from the SEC's fraud case - says otherwise.
So, all of a sudden, Tilton's biggest deadline might not come from the courtroom, but from a creditor.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market