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Estate awarded $5.5 million for smoker's lung cancer death
A group of big banks represented by Sullivan & Cromwell's Robert Giuffra Jr. contend that MBIA's decision to spin off its municipal bond insurance business was a fraudulent conveyance. MBIA, defended by Mark Kasowitz, has put up a procedural defense, arguing that the banks have to seek an administrative remedy. The two made their cases to the New York Court of Appeals on Tuesday.
The litigation that 18 banks brought against bond insurer MBIA Inc. four years ago has finally come to a close.
State, U.S. Courts Allow Suits Against MBIA to Proceed
Tousa Ruling Emboldens Junior Creditors in Tribune and Lyondell Bankruptcies
Last month, the federal bankruptcy judge overseeing Tousa's Chapter 11 ruled in favor of unsecured creditors who claimed that several major financial institutions engaged in a fraudulent conveyance when they lent Tousa $500 million before it filed for bankruptcy. Now, bondholders in the Chicago Tribune and Lyondell bankruptcies are trying to capitalize on that ruling. One attorney says Tousa has forced financial institutions to evaluate their liability on the "no money down" LBOs they financed in 2007.Trending Stories
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