By declaring bankruptcy for the investment vehicles that raised $2.5 billion to back her efforts to salvage troubled businesses, turnaround executive Lynn Tilton managed to delay a Delaware Supreme Court showdown over who owns the businesses she has been running, WSJ Pro Bankruptcy reported. Lawyers for the opposing sides appeared yesterday in the U.S. Bankruptcy Court in Wilmington, Del., for the first hearing since Tilton sought protection on Sunday for the three Zohar funds, the vehicles that carried investor money to a collection of troubled businesses she manages. Tilton said at the time of the filing she wanted to stop a legal war being waged over the portfolio of distressed businesses, which covers some dozen lawsuits in eight different courts.
