HALISTER1: Tilton’s Patriarch Partners Asks Judge to Block Collateral Sale

Tilton’s Patriarch Partners Asks Judge to Block Collateral Sale

(Bloomberg) -- Lynn Tilton’s Patriarch Partners asked a judge to block U.S. Bank, a bond trustee, from selling certain collateral tomorrow in an auction that it claims “blatantly” favors bond insurer MBIA Insurance Corp.
  • Patriarch and Tilton’s Octaluna LLC tell a judge they will be “irreparably injured” if the sale proceeds because MBIA will receive “well in excess” of the $149 million it’s owed
  • The sale involves 132 financial assets and 53 financial entities
  • The sale has been “restricted for no reason to a very narrow segment of potential investors” and will result in sale of assets below market value, the plaintiffs say
  • Lawsuit, filed in state court in New York, was removed to federal court
  • Case is Patriarch Partners XV v. U.S. Bank National Association, 16-cv-7128, U.S. District Court, Southern District of New York (Manhattan)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
25492Z US (Patriarch Partners LLC)
MBI US (MBIA Inc)
USB US (US Bancorp)
1070L US (United States District Court for the Northern District of New York)

People
Lynn Tilton (Patriarch Partners LLC)

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