U.S. Bankruptcy Judge Karen Owens has approved a $12 million settlement between the trustee for Dura Automotive Systems and two executives, resolving allegations raised in the Delaware Court of Chancery that the pair prioritized keeping control over a sale that may have kept Dura out of bankruptcy and improved its financial situation by hundreds of millions of dollars.

Attorneys have indicated that the claims against CEO Lynn Tilton and CFO Kevin Grady, who are together liable for the $12 million, will be dismissed pursuant to Owens’ order in the District of Delaware bankruptcy proceedings. Reid Collins & Tsai filed a complaint in the state court in April on behalf of Jeoffrey Burtch, trustee in Dura’s Chapter 7 bankruptcy.

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