Lynn Tilton, Zohar Funds Reportedly Plan to Refinance Debt or Sell assets
According to reports, New York financier Lynn Tilton, a creator of the Zohar funds, put the funds into bankruptcy with plans to refinance debt or sell assets. Filings for Zohar III Corp. and affiliates in Delaware listed up to $10 billion in assets and up to $1 billion in debt in the March 11 filing.
The Zohar Funds were reportedly designed as collateralized loan obligations that bundled loans to troubled companies into securities, and had raised about $2.5 billion from investors, according to Reuters.
According to reports, Tilton won a dismissal in September 2017 on charges brought by the U.S. Securities & Exchange Commission that she allegedly bilked investors of $200 million. Later in the year, she was reportedly cleared again of wrongdoing involving racketeering charges brought from the funds themselves.
Tilton who was recently the subject of a reality TV show called “The Diva of Distressed,” once reportedly ran the Zohar funds through her investment firm Patriarch Partners but gave up control in 2016 to the fund’s current manager, Alvarez & Marsal.
The White Law Group continues to investigate potential claims involving the liability that broker dealers may have for unsuitably recommending Zohar Funds to investors.
Specifically, The White Law Group is investigating the following Zohar Funds:
Zohar CDO 2003-1 Limited
Zohar II 2005-1 Limited
Zohar III Limited
Zohar CDO 2003-1
Zohar II 2005-1 Corp.
Zohar III Corp.
Broker dealers are required by law to perform adequate due diligence on all investment recommendations. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker makes an unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses. It may be possible to recover your losses through FINRA Arbitration.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
If you are concerned about your investment in Zohar Funds, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please contact The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.