FGIC Terminates Transaction Support Agreement, Ends Run-Off Plan
ByAinvest
Sunday, May 25, 2025 6:11 pm ET1min read
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The TSA, entered into on February 29, 2024, aimed to facilitate a transaction that would have expedited the run-off of FGIC's insured portfolio. However, FGIC has decided to pursue alternative transactions and will continue with the long-term run-off of its remaining insurance policies. This strategy aligns with the terms of the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013.
FGIC will seek to reduce or resolve remaining policy obligations through consensual transactions that are favorable to the company. The termination of the TSA does not indicate a shift in FGIC's rehabilitation plan but rather a strategic adjustment to its run-off process.
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. The company continues to work with Weil, Gotshal & Manges LLP as counsel and Houlihan Lokey Capital, Inc. as financial advisor.
This notice contains forward-looking statements, which are based on current expectations and beliefs concerning future events. Actual results and performance may differ materially from those expressed or implied by such statements.
References:
[1] https://www.businesswire.com/news/home/20250525951148/en/FGIC-Announces-TSA-Termination
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Financial Guaranty Insurance Company (FGIC) has terminated the Transaction Support Agreement (TSA), which would have accelerated the run-off of FGIC's insured portfolio in accordance with the TSA terms. FGIC will continue the long-term run-off of its remaining insurance policies and seek to reduce or resolve remaining policy obligations through consensual transactions favorable to FGIC. FGIC emerged from rehabilitation in 2013 and is responsible for administering its outstanding insurance policies in accordance with the Rehabilitation Plan.
Financial Guaranty Insurance Company (FGIC) has terminated the Transaction Support Agreement (TSA), which would have accelerated the run-off of FGIC's insured portfolio in accordance with the TSA terms. The termination, effective as of May 30, 2025, was announced on May 25, 2025.The TSA, entered into on February 29, 2024, aimed to facilitate a transaction that would have expedited the run-off of FGIC's insured portfolio. However, FGIC has decided to pursue alternative transactions and will continue with the long-term run-off of its remaining insurance policies. This strategy aligns with the terms of the First Amended Plan of Rehabilitation for FGIC, dated June 4, 2013.
FGIC will seek to reduce or resolve remaining policy obligations through consensual transactions that are favorable to the company. The termination of the TSA does not indicate a shift in FGIC's rehabilitation plan but rather a strategic adjustment to its run-off process.
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. The company continues to work with Weil, Gotshal & Manges LLP as counsel and Houlihan Lokey Capital, Inc. as financial advisor.
This notice contains forward-looking statements, which are based on current expectations and beliefs concerning future events. Actual results and performance may differ materially from those expressed or implied by such statements.
References:
[1] https://www.businesswire.com/news/home/20250525951148/en/FGIC-Announces-TSA-Termination
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