Articles from Financial Guaranty Insurance Company

Financial Guaranty Insurance Company (“FGIC”) today announced that it had received notice from the New York State Department of Financial Services (the “NYSDFS”) that, pursuant to and in accordance with the terms of the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013, the NYSDFS has approved an increase of the cash payment percentage (CPP) of permitted policy claims that FGIC is required to pay under such Plan from 64.50% to 66.00%, effective December 3, 2025. The 2025 Annual CPP Revaluation Notice, which is posted on the Policyholder Information Center at www.fgic.com/policyholderinfocenter/, provides additional information concerning the 2025 CPP Revaluation.

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.

Financial Guaranty Insurance Company (“FGIC”) today announced that it had received notice from the New York State Department of Financial Services (the “NYSDFS”) that, pursuant to and in accordance with the terms of the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013, the NYSDFS has approved an increase of the cash payment percentage (CPP) of permitted policy claims that FGIC is required to pay under such Plan from 61.11% to 64.50%, effective November 25, 2024. The 2024 Annual CPP Revaluation Notice, which is posted on the Policyholder Information Center at www.fgic.com/policyholderinfocenter/, provides additional information concerning the 2024 CPP Revaluation.

On February 29, 2024, Financial Guaranty Insurance Company (“FGIC”) announced that it had entered into a transaction support agreement dated as of February 29, 2024 (the “Transaction Support Agreement”), with certain holders of outstanding FGIC-insured securities and units issued by the Custodial Trusts holding Puerto Rico-related securities insured by FGIC (“Units”), regarding a potential transaction that would accelerate the run-off of FGIC’s insured portfolio pursuant to the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013 (the “Rehabilitation Plan”), in a re-opened rehabilitation proceeding, subject to support by the New York State Department of Financial Services (the “NYSDFS”) and approval by the Supreme Court of the State of New York (the “Proposed Transaction”). A copy of this Transaction Support Agreement is available on FGIC’s website at www.fgic.com/proposedacceleratedrunoff/.

Financial Guaranty Insurance Company (“FGIC”) announced the results of its joinder process for beneficial owners of certain FGIC-insured instruments and units (“Owners”) to join the Transaction Support Agreement, dated February 29, 2024, among FGIC and holders of certain FGIC-insured instruments and units (the “TSA”) and become eligible to receive an early joinder fee thereunder. The TSA provides for a transaction (the “Proposed Transaction”) that will accelerate the current long-term run-off of FGIC’s insured portfolio pursuant to the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013 (the “Existing Rehabilitation Plan”). Under the Proposed Transaction, all FGIC policies with outstanding DPO or DPO Accretion (each as defined in the Existing Rehabilitation Plan) and/or projected future claims (defined in the TSA as “Covered Policies”) will be satisfied and discharged, in consideration of payment in full in cash (on a present value basis) by FGIC to the respective holders of such policies (the “Permitted Policy Distribution”). The total gross amount of Permitted Policy Distributions that will be payable by FGIC to satisfy and discharge such policies is estimated to be approximately $1.841 billion. A copy of the TSA is available at http://www.fgic.com/proposedacceleratedrunoff/ and https://deals.is.kroll.com/fgic.

Financial Guaranty Insurance Company (“FGIC”) announced it has extended the deadline for beneficial owners of certain FGIC-insured instruments and units (“Owners”) to join the Transaction Support Agreement, dated February 29, 2024, among FGIC and holders of certain FGIC-insured instruments and units (the “TSA”), and become eligible to receive an early joinder fee thereunder (the “Early Joinder Fee”).

Financial Guaranty Insurance Company (“FGIC”) announced it has launched a process for beneficial owners of certain FGIC-insured instruments and units (“Owners”) to join the Transaction Support Agreement, dated February 29, 2024, among FGIC and holders of certain FGIC-insured instruments and units (the “TSA”), and become eligible to receive an early joinder fee thereunder (the “Early Joinder Fee”).

Financial Guaranty Insurance Company (“FGIC”) today announced that it has entered into a transaction support agreement dated as of February 29, 2024, with an ad hoc group (the “Ad Hoc Group”) of holders of certain outstanding FGIC-insured securities (including certain units issued by the respective Custodial Trusts holding Puerto Rico-related securities insured by FGIC), regarding a potential transaction that will accelerate the run-off of FGIC’s insured portfolio pursuant to the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013 (the “Rehabilitation Plan”), in a re-opened rehabilitation proceeding, subject to support by the New York State Department of Financial Services (the “NYSDFS”) and approval by the Supreme Court of the State of New York (the “Proposed Transaction”). A copy of this Transaction Support Agreement will be posted to FGIC’s website at www.fgic.com/proposedacceleratedrunoff/.

Financial Guaranty Insurance Company (“FGIC”) today announced that it had received notice from the New York State Department of Financial Services (the “NYSDFS”) that, pursuant to and in accordance with the terms of the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013, the NYSDFS has approved an increase of the cash payment percentage (CPP) of permitted policy claims that FGIC is required to pay under such Plan from the current 57.0% to 61.11%, effective November 8, 2023. The 2023 Annual CPP Revaluation Notice, which will be posted on the Policyholder Information Center at www.fgic.com/policyholderinfocenter/, provides additional information concerning the 2023 CPP Revaluation.

Financial Guaranty Insurance Company (“FGIC”) today announced that it had received notice from the New York State Department of Financial Services (the “NYSDFS”) that, pursuant to and in accordance with the terms of the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013, the NYSDFS has approved an increase of the cash payment percentage (CPP) of permitted policy claims that FGIC is required to pay under such Plan from the current 49.65% to 57.0%, effective December 8, 2022. The 2022 Annual CPP Revaluation Notice, which is posted on the Policyholder Information Center at www.fgic.com/policyholderinfocenter/, provides additional information concerning the 2022 CPP Revaluation.

Financial Guaranty Insurance Company (“FGIC”) today announced that it had received notice from the New York State Department of Financial Services (the “NYSDFS”) that, pursuant to and in accordance with the terms of the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013, the NYSDFS has approved an increase of the cash payment percentage (CPP) of permitted policy claims that FGIC is required to pay under such Plan from the current 44.5% to 49.65%, effective October 27, 2021. The 2021 Annual CPP Revaluation Notice, which is posted on the Policyholder Information Center at www.fgic.com/policyholderinfocenter/, provides additional information concerning the 2021 CPP Revaluation.