Welcome to the Daily 5 report for Thursday, Aug. 28.
Lynn Tilton has been a controversial name on Wall Street for many years, and she has also made a mark on the U.S. auto supply chain with her former ownership of longtime parts producer Dura Automotive Systems.
Dura was quietly sold in 2020, but it turns out one of Tilton's affiliates still owes $39 million to another woman-owned auto supplier, Lucerne International Inc., according to this lawsuit reported today by Kurt Nagl of our affiliate Crain's Detroit Business.
The complaint, filed in Wayne County Circuit Court in Detroit on Aug. 21, names Tilton — who once described herself as the "diva of distressed" — and nearly a dozen corporate entities tied to the businesswoman, including Michigan company Advanced Vehicle Assemblies, Nagl wrote.
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Lucerne won a judgment against Tilton's affiliate in 2022 for $32 million but is still trying to collect that amount plus interest for about $39 million.
"Lucerne won a $32 million judgment after proving Tilton and her affiliates attempted to cripple our business," Lucerne CEO Mary Buchzeiger said in a statement. "Their tactics failed. We came back stronger, and we are committed to collecting every dollar owed."
Tilton has a long history of litigation and fights with securities regulators, Nagl reported.
Her supply chain dealings date to 2009 when she originally purchased Dura. Tilton at the 2010 CAR Management Briefing Seminars in Traverse City, Mich., recounted a meeting at the time with Ford Motor Co.'s former purchasing chief, Tony Brown.
Tilton, according to this story from August 2010, said Brown demanded to know whether her Patriarch Partners was intent on "stripping and flipping" Dura by taking cash out of the company before selling it.
"Tony, you must have the story mistaken," she recalled saying. She assured him she held on to companies. "It's only men that I strip and flip."
Speaking of Ford, the outcome of a UAW election at the automaker's joint venture battery plant in Kentucky is resting on 41 challenged ballots, Reuters reported. The UAW is claiming victory. The JV says not so fast.
Ford also issued its 105th U.S. recall of the year. This one stemmed from potential brake fluid leaks in about 500,000 vehicles, Reuters reported.
That's it for today. If you want to see this story in your browser, click here.
— Philip Nussel, online editor
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