NEW YORK–(BUSINESS WIRE)–Financial Guaranty Insurance Company (“FGIC”) announces today that it has terminated the Transaction Support Agreement dated as of February 29, 2024 (the “TSA”), among FGIC and certain holders of outstanding FGIC-insured securities and units issued by the Custodial Trusts holding Puerto Rico-related securities insured by FGIC, regarding a potential transaction that would have accelerated the run-off of FGIC’s insured portfolio in accordance with the terms of the TSA. The termination will be effective as of May 30, 2025.
While FGIC remains open to exploring potential alternative transactions, FGIC will continue the long-term run-off of its remaining insurance policies, including seeking to reduce or otherwise resolve remaining policy obligations through consensual transactions on terms that are favorable to FGIC, in accordance with the terms of the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013.
About FGIC
FGIC is a New York stock insurance corporation and a wholly owned subsidiary of FGIC Corporation. FGIC emerged from rehabilitation on August 19, 2013, and is responsible for administering its outstanding insurance policies in accordance with the terms of the Rehabilitation Plan. Please visit www.fgic.com.
Additional Information:
Weil, Gotshal & Manges LLP is serving as counsel and Houlihan Lokey Capital, Inc. is serving as financial advisor.
FORWARD-LOOKING STATEMENTS
This notice contains “forward-looking statements” – that is, statements related to possible future events. Forward-looking statements often address expectations and beliefs as to future performance, results and business plans. You should not place undue reliance on forward-looking statements because they speak only as of the date they are made and are necessarily subject to risks and uncertainties that could cause actual results and performance to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are based upon FGIC management’s current expectations and beliefs concerning future events. FGIC undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts
Investor and Media Contacts:
Investor Relations: Winston Wohr, +1 212.312.2776 or [email protected]
Press Relations: +1 212.312.2775
