FGIC reinsures certain public finance financial guaranty policies
Clients FGIC Corporation
Jones Day represented FGIC Corporation, owner of Financial Guaranty Insurance Company (FGIC), in an action for injunctive relief filed by GE Funding Holdings, Inc. (GE), a preferred shareholder of FGIC. GE sought to enjoin FGIC from consummating a transaction with MBIA Insurance Corp. (MBIA) through which FGIC would pay MBIA $938 million to reinsure certain of the public finance financial guaranty policies FGIC had written. GE claimed that the reinsurance transaction would result in a transfer of "all or substantially all" of FGIC's assets and thus was subject to a charter provision affording GE a blocking right as to any such transfer. The Delaware Chancery Court conducted a preliminary injunction hearing on the matter on September 29, 2008. After the hearing but before the Court had issued a decision, GE gave its consent to the reinsurance transaction.
GE Funding Holdings, Inc. v. FGIC Corporation, No. 4012-CC (Del. Ch.)