Unlawful Commonwealth Revised Fiscal Plan Demonstrates Decision to Litigate Rather Than Negotiate

By a News Reporter-Staff News Editor at Insurance Weekly News -- Assured Guaranty Corp. and Assured Guaranty Municipal Corp., two bond insurance subsidiaries of Assured Guaranty Ltd. (NYSE:AGO) (together with their parent, Assured Guaranty), filed an Adversary Complaint against the Commonwealth of Puerto Rico, the Financial Oversight and Management Board for Puerto Rico (Oversight Board), Puerto Rico governor Hon. Ricardo Rossello Nevares and others, in which Assured Guaranty asserts the Oversight Board developed and approved a Revised Fiscal Plan that, on its face, violates the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA") and the United States Constitution.

"As a municipal bond insurer, Assured Guaranty has a long-term involvement in the bonds used to fund many Puerto Rico projects and shares a strong interest in the Commonwealth's economic recovery. For months, we have been asking that the Commonwealth and Oversight Board open constructive negotiations with creditors and stakeholders, but they have instead produced an unlawful fiscal plan, without creditor input, indicating they would rather litigate than engage in meaningful negotiations to develop a realistic solution," said Assured Guaranty President and CEO Dominic Frederico. The Revised Fiscal Plan allocates $1.5 billion for litigation and related expenses without providing for debt service.

Keywords for this news article include: Business, Legal Issues, Assured Guaranty Ltd..

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