When Lady Death vanished from hell there was a power void and ones such as Vulbogliagh filled in the gap. Particularly bold he took Lady Death's castle as his own and desecrated it with acts that the queen of the dead wouldn't appreciate. He also made it his task to collect the things that were hers for himself such as Vassago and the nameless wolves.
During the events of Wicked Ways 1 (Issue 1 of Lady Death monthly) Lady Death returns from exile and at Lady Death's former mansion Vulbogliagh sits on her throne pleased at the desecration of her palace and how he took control when she left and returned hell to chaos and hedonism. Lady Death arrives and they trade words before she takes him by the throat. In control of the situation Nightmares starts to request blood again and this time she cannot resist. Removing Vulbogliagh head she tells his minions to leave and spread the word of her return.
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