The recent agreement will resolve pending litigation, as well as outstanding and potential claims by FGIC
related to alleged representations and warranties breaches and other claims involving such securitisations.
According to one consultant, it will be difficult for FGIC
to come out of rehabilitation and return to writing insurance for the bond market because much of that business has dried up.
had two floors at 125 Park Avenue, but renewed and doubled its presence in the building about two years ago, a source said, converting its existing space and two new contiguous floors into an elegant, nearly seamless installation.
A potential financial bailout of New York-based FGIC
is being led by Calyon, the investment-banking unit of French bank Credit Agricole SA.
entered into Chapter 11 Bankruptcy protection in 2010 after a series of quarterly losses due to its insuring of residential mortgage-backed securities from 2005 through 2007.
Upon the successful completion of the Offer, the advisory committee will (i) recommend a special litigation advisor to aid FGIC
in its claim efforts in connection with the Recoveries Trust to be established as provided in the Offer and (ii) propose a prospective nominee for the board of directors for FGIC
In addition, FGIC
has informed the Offeror that the New York State Insurance Department has indicated that it will not permit FGIC
to consent to the extension of the Offer beyond 11:59 p.
The RMBS was insured by FGIC
primarily in 2005, 2006 and 2007, and the RMBS performance continued to deteriorate during the second quarter.
As under the terms of the original offer, the Offeror is offering to exchange the Eligible Insured Securities for a combination of cash and certificates generally representing the right to receive distributions of an amount equal to the principal and interest distributions made on the underlying Eligible Insured Securities without the benefit of the related existing FGIC
NEW YORK -- FGIC
Corporation (the "Company"), a privately held insurance holding company, announced today that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York.
As of July 28, (i) Eligible Insured Securities representing $2,495,379,545 in current unpaid principal balance measured as of April 30, 2010 have been tendered into the offer, (ii) non-binding agreements have been reached by the Offeror and/or FGIC
and Eligible Insured Securities holders to tender Eligible Insured Securities totaling $121,808,237 in aggregate current unpaid principal balance measured as of April 30, 2010, and (iii) letters of transmittal have been completed, although the Eligible Insured Securities have not yet been delivered, with respect to Eligible Insured Securities totaling $846,909,885 in current unpaid principal balance measured as of April 30, 2010.
NEW YORK -- First paragraph, second sentence should read: (ii) non-binding agreements have been reached by the Offeror and/or FGIC
and Eligible Insured Securities holders to tender Eligible Insured Securities totaling $121,808,237 (sted $590,028,174); and third sentence should read 34.