Dear Clients and Friends:
Amini LLC just received a very significant decision from U.S Bankruptcy Judge Stuart M. Bernstein in a case we tried last summer against Lynn Tilton, chief executive officer and sole principal of Patriarch Partners, LLC and its affiliated entities, a holding company managing 75 companies: almost $42 million against her personally and a judgment of almost $40 million against Patriarch Partners Administrative Services, LLC, plus attorneys fees.
In a 100 page-post trial opinion following a six day bench trial, the Bankruptcy Court found Tilton breached her fiduciary duty to Transcare Corporation — a regional ambulance company — when she caused her lending corporation to foreclose on Transcare’s valuable business assets, while filing the rest of Transcare into bankruptcy. In addition, the Court found that the foreclosure itself constituted an actual fraudulent transfer, by removing Transcare’s valuable assets out of the reach of creditors.
Besides the application of “badges of fraud” to the findings, the opinion is particularly noteworthy for its damage analysis, and acceptance of the Trustee’s damage expert’s opinions and calculations, relying on Tilton’s own management estimates and statements, lack of material financial information, and lack of any alternative financial estimates of her own. Bijan Amini and Avery Samet tried the case with the able assistance of the whole team at what is now Amini LLC.
We are very proud of our work and the resultant Bankruptcy Court decision. We would welcome the opportunity to tell you about our firm and our various areas of practice and expertise.