Zohar III completes sale of Hussey Copper to KPS Capital affiliate

By Sarah Lizee

Olympia, Wash., Dec. 23 – Zohar III, Corp. has completed the sale of Libertas Copper, LLC, known as Hussey Copper, to Kokkino Inc., an affiliate of KPS Capital Partners, LP, according to a press release from KPS.

The sale was approved by the U.S. Bankruptcy Court for the District of Delaware on Nov. 30, as previously reported.

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.

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 the role of manager, director or officer of those companies by Patriarch Partners, LLC founder and CEO 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.

Patriarch stakeholders will receive a roughly $1.5 million payment on the closing date of the Hussey transaction 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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