MBIA Reaches Settlement with BNP Paribas in New York Restructuring Lawsuit
By David McLaughlin – Jan 10, 2012 5:37 PM GMT+0000
MBIA Inc. and BNP Paribas (BNP) settled litigation challenging the bond insurer’s restructuring, according to the New York Department of Financial Services.
Paris-based BNP will withdraw from two lawsuits in New York State Supreme Court in Manhattan, David Neustadt, a spokesman for the department, said in a telephone interview today.
A group of financial institutions sued Armonk, New York- based, MBIA in 2009, claiming the bond insurer’s restructuring, which was approved by New York’s insurance department, left MBIA undercapitalized and possibly unable to pay future claims.
Pascal Henisse, a spokesman for BNP, and Marc Kasowitz, an attorney for MBIA, didn’t immediately respond to e-mails seeking comment on the settlement.
The cases are ABN Amro Bank NV v. MBIA Inc. (MBI), 601475-2009, and ABN Amro Bank NV v. Dinallo, 601846-2009, New York state Supreme Court (Manhattan).