Fir Tree Partners Commends NY Supreme Court Confirmation of FGIC Rehabilitation Plan [Professional Services Close – Up]

Fir Tree Partners, a private investment firm and a policyholder of Financial Guaranty Insurance Company (FGIC), praised the confirmation of the company's Plan of Rehabilitation by Judge Doris Ling-Cohan of the Supreme Court of the State of New York. The Plan, which was confirmed June 11, is expected to go effective by the end of August 2013.

As a FGIC policyholder, Fir Tree noted that its activism in the reorganization over the past four years helped create a strategic alternative to a traditional insurer liquidation, which also required the support of a diverse number of interested parties.

"The Plan's confirmation resulted in a 'win-win' alternative for policyholders, the company and its employees, and the New York State Department of Financial Services," said James Walker III, a Managing Partner at Fir Tree. "The Superintendent, the Department of Financial Services, and the company deserve full credit for working together to gain confirmation for a plan that provides fair and equitable treatment for all of FGIC's policyholders."

Evan Lederman, Associate General Counsel at Fir Tree said, "The Plan confirmed by the Court represents a unique and innovative structure to settle current and future claims, and once the Plan becomes effective FGIC will emerge as a stronger insurance company. The confirmation of the Plan yesterday was the culmination of countless hours of hard work by many diverse parties, and it was a landmark day for the company and its policyholders."

The Company reported that on June 28, 2012, Benjamin M. Lawsky, Superintendent of Financial Services of the State of New York, was appointed as the Rehabilitator of FGIC. On September 27, 2012, the Rehabilitator filed a proposed Plan of Rehabilitation for FGIC with the Court.

Fir Tree Partners is a value-oriented investment manager that manages private investment funds for endowments, charitable and philanthropic foundations, pension funds and other institutional and private investors.

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