Assured Guaranty Withdraws Complaint Against Puerto Rico’s Fiscal Plan
October 06 2017 - 11:04PM
Business Wire
Assured Guaranty Municipal Corp. and Assured Guaranty Corp., two
bond insurance subsidiaries of Assured Guaranty Ltd.
(NYSE:AGO)(together with its subsidiaries, Assured Guaranty or the
Company), have voluntarily withdrawn without prejudice their
lawsuit challenging the legality of the Commonwealth’s Fiscal Plan
as certified by The Financial Oversight and Management Board for
Puerto Rico (Oversight Board). The complaint, filed on May 3, 2017,
asserted that the certified Fiscal Plan violated multiple
provisions of PROMESA and the United States Constitution.
“While we continue to believe the current Fiscal Plan is
illegal, we have determined to voluntarily dismiss our complaint
without prejudice at this time due to the crisis in Puerto Rico
following Hurricane Maria, and the high likelihood that the Fiscal
Plan will have to be revised,” said Dominic Frederico, President
and CEO of Assured Guaranty. “Now is no time to be arguing over
these issues, when residents of the island are suffering. The
current focus should remain on restoration and relief for Puerto
Rico. Additionally, it would be an avoidable misallocation of time,
money and judicial resources to litigate issues about a Fiscal Plan
that is expected to change.”
Assured Guaranty urges the Oversight Board to use this
opportunity to reset its relationship with creditors, correct the
defects in the current Fiscal Plan and work collaboratively with
creditors on a new fiscal plan that complies with the mandatory
statutory requirements of PROMESA, the Commonwealth Constitution,
and the United States Constitution. Meeting PROMESA’s dual stated
purpose of fiscal responsibility and restoration of the
Commonwealth’s access to the capital markets has become even more
critical in the aftermath of the hurricane damage.
Under applicable law, Assured Guaranty is permitted to refile
the lawsuit. If insufficient progress is made in developing a new
fiscal plan that complies with PROMESA and respects Assured
Guaranty’s constitutional, statutory and contractual rights,
Assured Guaranty will refile the lawsuit at an appropriate
time.
Cautionary Statement Regarding Forward-Looking
Statements
Any forward-looking statements made in this press release
reflect Assured Guaranty’s current views with respect to future
events and are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements
involve risks and uncertainties that may cause actual results to
differ materially from those set forth in these statements. These
risks and uncertainties include, but are not limited to, those
resulting from further adverse developments in Puerto Rico or at
any of its instrumentalities, litigation that has already been
initiated or may be initiated in the future, governmental or
legislative action or inaction by Puerto Rico or the United States
(including any actions taken by the Oversight Board, other risks
and uncertainties that have not been identified at this time,
management’s response to these factors, and other risk factors
identified in Assured Guaranty’s filings with the Securities and
Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which are made as of
October 6, 2017. Assured Guaranty undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law.
Assured Guaranty Ltd. is a publicly traded Bermuda-based holding
company. Its operating subsidiaries provide credit enhancement
products to the U.S. and international public finance,
infrastructure and structured finance markets. More information on
Assured Guaranty Ltd. and its subsidiaries can be found at
AssuredGuaranty.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20171006005811/en/
Assured Guaranty Ltd.Robert Tucker, 212-339-0861Senior Managing
Director, Investor Relations and Corporate
Communicationsrtucker@agltd.comorMedia:Ashweeta Durani,
212-408-6042Vice President, Corporate
Communicationsadurani@agltd.com
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