Lynn Tilton, Patriarch Partners VIII, Patriarch Partners XIV, Patriarch Partners XV, Octaluna, Octaluna II and Octaluna III (collectively, “Patriarch”) filed with the U.S. Bankruptcy Court an objection to U.S. Trustee’s motion for the appointment of a Chapter 11 trustee, or in the alternative, for the appointment of an examiner to the Zohar III case.
The objection asserts, “Patriarch has responded separately to the unfounded allegations of wrongdoing and bad faith asserted by the Secured Creditors against Ms. Tilton in their motion to dismiss these Chapter 11 cases, or in the alternative seek appointment of a Chapter 11 trustee [D.I. 56] (the ‘Dismissal/Trustee Motion’). Patriarch files this Objection to address the distinct arguments made in the Motion….The U.S. Trustee’s Motion should be denied, as there is no cause for the appointment of a Chapter 11 trustee, and there is no current need for the appointment of an examiner.”
In addition, “Whatever acrimony existed pre-petition between the Secured Creditors and AMZM (then acting on behalf of the Debtors) and Ms. Tilton does not translate into acrimony between the Debtors and the Secured Creditors in these bankruptcy proceedings….To the contrary, the Debtors, through their attorneys and Chief Restructuring Officer, and Ms. Tilton have made every effort in these Chapter 11 cases to conduct an open and transparent process where parties can cast aside their posturing and focus on maximizing value in these Chapter 11 cases.”
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