Right now the things we're banking on ultimately making the Patriarch Partners founder stronger are: her battle versus the Securities and Exchange Commission; the chorus of haters who want to make her feel bad about (allegedly) creating "a work atmosphere...filled with sexual innuendos and a river of vulgarities", as well as conceiving and distributing the most festive Christmas card you'll ever lay eyes on; the fact that she has barely any time to pose for photos on the hood of luxury vehicles; criticism by those who fail to understand what she's trying to accomplish through her hashtags; and now, some bankruptcy proceedings.
Patriarch Partners XV LLC on Sunday filed involuntary chapter 11 bankruptcy petitions against Zohar CDO 2003-1 Ltd., a part of her investment operation that has been caught up in a fight with bond insurer MBIA Inc. Ms. Tilton invests in troubled companies, then bundles loans to them into packages that are sold to investors. The Zohar-I fund that is the subject of the involuntary bankruptcy filing dates back to 2003. It is packed with loans to distressed and restructuring businesses, which are managed by Patriarch. In a filing with the U.S. Bankruptcy Court in New York, Patriarch said it holds $286.5 million worth of debt issued by the fund, dubbed Zohar-I, and seeks court protection “from the fraudulent efforts of a more senior creditor, MBIA.” In a statement Sunday, MBIA Insurance Corp. said it had honored its insurance obligations Friday on the insurance policy for the Zohar-I CDO, which had suffered a payment default. MBIA said the involuntary bankruptcy proceeding is “a desperate and transparent effort to deflect attention and blame.”