Puerto Rico bond insurers News

Insurer MBIA Sues Banks Over ‘Financial Tragedy’ of Defaulted Puerto Rico Bonds

Bond insurance company MBIA Inc. sued several financial institutions on Thursday over their role in underwriting billions of dollars of Puerto Rico bonds that eventually went into default. The lawsuit filed in superior court in San Juan claimed the banks …

Puerto Rico Oversight Board Sues Banks, Bondholders in Bid to Recoup $1 Billion

Puerto Rico’s federally created financial oversight board said on Thursday it sued some owners of potentially invalid bonds of the bankrupt U.S. commonwealth, as well as Wall Street banks and firms that participated in various debt issuances in an effort …

Fitch Warns Bond Insurers After Court’s Puerto Rico Bankruptcy Ruling

A U.S. Appeals Court ruling last month in Puerto Rico’s bankruptcy led Fitch Ratings on Thursday to place seven city, school, and health care ratings in states including Illinois and California on a watch list for potential downgrades. The credit …

Bond Insurers Want Independent Receiver for Puerto Rico’s Bankrupt Electric Utility

Bond insurance companies that were not part of a preliminary deal to restructure debt issued by the Puerto Rico Electric Power Authority (PREPA) have relaunched litigation seeking a receiver for the bankrupt agency. The move could signal that Puerto Rico …

Holdout Bondholders Agree to Support Puerto Rico Restructuring Deal

Two major holders of Puerto Rico bonds that opposed a restructuring deal for the bankrupt U.S. commonwealth’s Sales Tax Financing Corporation (COFINA) revenue bonds are now part of the agreement, the island’s federally appointed oversight board announced on Friday. The …

Bond Insurer Urges Receiver for Puerto Rico’s Bankrupt Utility

MBIA Inc.’s National Public Finance Guarantee is urging Puerto Rico’s federal board to consider putting a receiver in charge of the island’s bankrupt power utility after the electricity provider lost two chief executive officers last week amid an uproar over …

Puerto Rico Bondholders Suffer Setback as Lawsuit Dismissed

A U.S. federal judge on Tuesday dismissed a lawsuit by some of Puerto Rico’s bondholders, who had argued that the U.S. territory broke the law by defaulting on constitutionally-guaranteed debt despite having the money to make payments. Judge Laura Taylor …

Even with Rescue, Puerto Rico Default Likely; Insurers Still at Risk for Millions

Investors in Puerto Rico’s debt-burdened economy still face risks of default on some of the island’s $70 billion in debt even after the U.S. Congress on Wednesday created a powerful federal oversight board to manage credit restructurings. U.S. President Barack …

Insurers with Big Stake Buy Puerto Rico Bonds

The companies with the most at stake in Puerto Rico’s debt crisis have become buyers of the island’s bonds. MBIA Inc.’s National Public Finance Guarantee Corp. and Ambac Financial Group, which together insure about $19 billion of the U.S. territory’s …

Bankruptcy Would Be ‘Huge Mistake’ for Puerto Rico, Says Bond Insurer

The question of whether bankruptcy is a good option for Puerto Rico came to a head at an investor conference featuring the island’s top restructuring adviser and head of one of the bond insurers with the most exposure to the …