MBIA, however, still refused to agree to an extension. Tilton said: "Our decision to file Zohar I for bankruptcy and to seek court approval for a plan of reorganization that will pay MBIA in full, while maximizing value for Patriarch, only emerged when it became clear that MBIA had acted in bad faith throughout our discussions. Two credit funds, Zohar II and Zohar III, are not part of the Chapter 11 filing, according to the statement, and they will not be subject to any cross-defaults. The law firm Skadden, Arps, Slate, Meagher & Flom and the financial adviser Moelis & Co. are advising Patriarch Partners on the restructuring. MBIA disputed Tilton's characterization of events. In a statement, it said [emphasis ours]: On Friday, MBIA Insurance Corp. honored its obligations and paid a claim on its insurance policy for the Zohar I CDO, which had suffered a payment default and for which Ms. Tilton has now filed a petition to place into an involuntary bankruptcy proceeding.