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Puerto Rico Bond Insurers Can Sue Banks in Island Court: Judge

July 29, 2020, 4:38 PM

Bond insurers who blame underwriters for losses can pursue their claims against the banks behind more than $11 billion of Puerto Rico’s public debt in a local court, the judge overseeing the commonwealth’s debt reorganization ruled.

  • U.S. Bankruptcy Judge Laura Taylor Swain agreed on Wednesday with MBIA Insurance, National Public Finance Guarantee, and Ambac Assurance that they should be allowed to return to a Puerto Rico court to resolve their allegations against bond underwriters
  • The insurers claim that a long list of banks misrepresented the island’s finances in bond documents, causing the insurers to guarantee repayment of the debt. When ...