The U.S. Bankruptcy Court granted Zohar III’s motion for an order approving and authorizing a settlement agreement by and between the Debtors, Lynn Tilton, The Patriarch Stakeholders, MBIA Insurance Corp. and Zohar III’s controlling class.
As previously reported, “The Debtors were placed into bankruptcy to obtain a breathing spell from the several contentious pending litigations and to create a process to monetize the Debtor’s assets through sales or refinancing of the Debtors’ interests in the Portfolio Companies, and maximize value for the benefit of all of the Debtor’s stakeholders. The litigations, brought by and against the Debtors, involve at least 12 separate cases, raise numerous complex legal issues, and involve, virtually all Zohar Funds stakeholders….The Parties mediated their various disputes….The material terms of the binding settlement agreement are: The Mediator shall appoint a single Independent Director for each of the Zohar Funds….The Independent Director shall not have the power to convert or dismiss the Chapter 11 cases during the 15 Month Window. Tilton shall resign as a director of each and shall have no governance authority or responsibility for the Zohar Funds, other than as Designated Tax Director. On the Full payment date, the Independent Director shall be deemed to resign and Tilton shall be automatically reinstated as director of each of the Zohar Funds.” Pursuant to the settlement agreement noted above, the Mediator has appointed Joseph J. Farnan Jr. to serve as the Independent Director for each of the Zohar Funds.
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