Lynn Tilton is more “distressed” than “diva.”

The embattled CEO of private-equity firm Patriarch Partners said she is stepping down from three of her flagship credit funds amid a long-running legal battle with bond insurer MBIA.

The self-described “diva of distressed,” who buys up debt from failing companies and tries to turn them around, has been fighting over three Zohar funds totaling $2.5 billion since 2009.

Tilton tried to force one of the funds into bankruptcy in November to keep MBIA from taking over the assets. On Friday, Tilton said she was walking away.

Patriarch made its decision “after years of fruitless restructuring negotiations with MBIA,” the company said.

“In order to avoid any further negative impact on the underlying portfolio companies, Patriarch has chosen to step down as Collateral Managers of the Zohar funds and focus its full attention on the portfolio companies.”

Patriarch will continue to run about 70 other companies and operate as a family office. Tilton will remain Patriarch’s CEO.