Zohar III approved to sell Hussey Copper to KPS Capital affiliate

By Sarah Lizee

Olympia, Wash., Dec. 2 – Zohar III, Corp. received court approval to sell the beneficial or equity interests in portfolio company Libertas Copper, LLC, known as Hussey Copper, to Kokkino Inc., an affiliate of KPS Capital Partners, LP, according to an order filed Monday in the U.S. Bankruptcy Court for the District of Delaware.

Though the equity purchase agreement was filed under seal, the debtors estimated that the transaction would bring in around $17 million to $21 million. However, that range was subject to adjustments, according to court documents.

As previously reported, the Zohar debtors were deemed in control of a group of portfolio companies, including Hussey, as part of an order that acknowledged the resignation of manager, director or officer of those companies by Lynn Tilton.

Tilton’s resignation was deemed effective as of March 21, 2020.

Tilton and other Patriarch stakeholders were also ordered to work in good faith with the Zohar debtors to transition the ownership and control of the portfolio companies.

Zohar’s motion asking the court to rule that its debtors controlled the portfolio companies was also filed under seal.

As part of the Hussey transaction, the Patriarch stakeholders will receive a roughly $1.5 million closing date payment, as part of a settlement agreement.

Zohar is a Grand Cayman, Cayman Islands-based collateralized debt obligation. The company filed bankruptcy on March 11, 2018 under Chapter 11 case number 18-10512.

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