National Public Finance Guarantee Corporation Issues Statement on Puerto Rico Oversight Board Decision to Not Approve PREPA RSA
June 28 2017 - 12:19PM
Business Wire
National Public Finance Guarantee Corporation (National), an
indirect subsidiary of MBIA Inc. (NYSE:MBI), today issued the
following statement in response to the announcement by the
Financial Oversight and Management Board for Puerto Rico (the
“Oversight Board”) that it did not approve the proposed Puerto Rico
Electric Power Authority (“PREPA”) Restructuring Support Agreement
(“RSA”), which was the only pre-existing consensual agreement
included in the Puerto Rico Oversight, Management, and Economic
Stability Act (“PROMESA”).
“We are disappointed in the Oversight Board’s decision to not
approve the PREPA RSA after three years of negotiations and believe
that the decision is in violation of the PROMESA law. The RSA would
provide PREPA needed debt relief, restore access to the capital
markets and attract private investment necessary for modernization
and EPA compliance. National will continue to pursue its lawsuit in
the U.S. District Court for the District of Puerto Rico that seeks
to compel the Oversight Board to comply with its obligations under
PROMESA and remains committed to working with the Commonwealth and
PREPA to find a sustainable, long-term solution for the people of
Puerto Rico.
National has adequate resources, with claims-paying resources
totaling $4.6 billion at March 31, 2017, to ensure that its
policyholders will receive the full amount of the scheduled
interest and principal payments that come due on their National
insured bonds.”
Forward-Looking Statements
This release includes statements that are not historical or
current facts and are “forward-looking statements” made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The words “believe,” “anticipate,” “project,”
“plan,” “expect,” “estimate,” “intend,” “will likely result,”
“looking forward” or “will continue,” and similar expressions
identify forward-looking statements. These statements are subject
to certain risks and uncertainties that could cause actual results
to differ materially from historical earnings and those presently
anticipated or projected, including, among other factors, the
possibility that MBIA Inc. or National will experience increased
credit losses or impairments on public finance obligations issued
by state, local and territorial governments and finance authorities
that are experiencing unprecedented fiscal stress; the possibility
that loss reserve estimates are not adequate to cover potential
claims; MBIA Inc.’s or National’s ability to fully implement their
strategic plan; and changes in general economic and competitive
conditions. These and other factors that could affect financial
performance or could cause actual results to differ materially from
estimates contained in or underlying MBIA Inc.’s or National’s
forward-looking statements are discussed under the “Risk Factors”
section in MBIA Inc.’s most recent Annual Report on Form 10-K,
which may be updated or amended in MBIA Inc.’s subsequent filings
with the Securities and Exchange Commission. MBIA Inc. and National
caution readers not to place undue reliance on any such
forward-looking statements, which speak only to their respective
dates. National and MBIA Inc. undertake no obligation to publicly
correct or update any forward-looking statement if it later becomes
aware that such result is not likely to be achieved.
National Public Finance Guarantee Corporation, headquartered in
Purchase, New York is the world’s largest U.S. public finance-only
financial guarantee insurance company, with offices in New York and
San Francisco. Please visit National’s website at
www.nationalpfg.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170628006055/en/
National Public Finance Guarantee CorporationMedia:Greg
Diamond, 914-765-3190orFixed-Income Investor Relations:Kevin Brown,
914-765-3385orMBIA Inc.Investor and Media Relations:Greg
Diamond, 914-765-3190
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