For the second time in a week, bond insurer MBIA Wednesday lost a motion to dismiss a challenge to its controversial 2009 restructuring, in which the insurer transferred $5.4 billion in assets to a subsidiary.
Manhattan Supreme Court Justice James A. Yates ruled in ABN Amro Bank N.V. v. MBIA Inc., 601275-2009, that fraudulent conveyance suits by 23 U.S. and foreign investment banks and financial institutions against MBIA could go forward. The banks, as policyholders and creditors, claim that a reorganization that split the company in two left essentially “insolvent” the unit tasked with meeting coverage obligations to them.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
