Lynn Tilton — known on Wall Street as the “Diva of Distressed” — just cried for the help of a bankruptcy judge.
The flamboyant financier — who gained notoriety for her racy outfits, as well as her penchant for sending steamy Christmas cards to clients — said Monday that the Zohar Funds she once managed have voluntarily filed for Chapter 11 protection.
That’s despite two legal wins in late 2017, in which Tilton had appeared to gain the upper hand in an epic legal battle with bond insurer MBIA and the funds’ investors.
Tilton, who runs New York-based buyout firm Patriarch Partners, stepped down as manager of the three funds in 2016 amid the litigation. The Zohar Funds, now managed by Alvarez & Marsal, control $2.5 billion in loans to distressed companies.