Wall Street financier Lynn Tilton on Friday said that her firm Patriarch Partners LLC will become a "family office" and will step down as collateral manager of three investment pools that helped fund her portfolio of troubled companies, Reuters reported. The decision follows years of legal battles with the bond insurer MBIA Inc. It also followed Patriarch's bid on Nov. 22 to put one of the pools, a collateralized loan obligation called Zohar I, into involuntary bankruptcy to keep MBIA from seizing its assets. That effort came two days after the CLO defaulted on some notes, forcing MBIA to make a $149 million payment. Tilton and Patriarch will withdraw their opposition to MBIA's bid to dismiss the involuntary bankruptcy petition.
