Troubled debt manager Invictus loses control of its flagship fund after battle with major investors

A troubled new debt manager lost control of his flagship fund after big investors ousted him for business tactics they considered too aggressive, including conduct during a Chapter 11 bankruptcy that resulted in to legal sanctions against the fund, according to people familiar with the matter.

Austin, Texas-based Invictus Global Management manages a flagship $100 million distressed debt fund that invests in distressed or bankrupt companies. She has been active in several major Chapter 11 financing and litigation matters over the past four years, including the Aeromexico bankruptcies, Latam Airlines and discount retailer Tuesday morning.