Turnaround manager Lynn Tilton has walked away from a collection of troubled businesses she has managed for years after being ordered to sell them to pay off Zohar funds, lenders that have sued her, WSJ Pro Bankruptcy reported. The move leaves the future of companies Tilton manages, such as aerospace manufacturer MD Helicopters Inc., up in the air as the coronavirus epidemic ravages the economy. MD Helicopters and other struggling businesses have been managed by Tilton for years and have defaulted on their loans from the Zohar funds, which owe investors $1.7 billion. The Zohar funds at a hearing sought a court order easing a transition of control from Tilton to the funds, which have been pressuring her to sell the businesses. Tilton resigned less than 24 hours after losing a fight over a schedule for selling the businesses. Under court orders to help with a sale effort, Tilton could simply refuse to engage, destabilizing the situation, said Christopher Shore, lawyer for the Zohar CLO funds. A spokesperson for Tilton denied the funds’ contention that the turnaround manager abandoned the companies.
