This excerpt taken from the MBI 10-K filed Feb 29, 2008.
Notes to Consolidated Financial Statements
FACE="Times New Roman" SIZE="2">Note 1: Business and Organization
MBIA Inc., together with its consolidated subsidiaries, (collectively,
This excerpt taken from the MBI 10-Q filed Aug 8, 2007.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Royal filed a petition with the Third Circuit requesting that the case be reheard, which was denied in April 2006. In April 2006, Royal filed a motion with the District Court seeking a release of the collateral it pledged in connection with its appeal of the District Court judgment against it in 2003.
On April 2, 2007, MBIA announced that MBIA Corp. reached an agreement with Royal to settle the outstanding litigation. The amount paid by Royal under the terms of the settlement was sufficient to repay the approximately $362 million of outstanding par amount of the bonds insured by MBIA Corp. as well as to reimburse MBIA Corp. for a portion of the claims that MBIA Corp. has paid to date under its insurance policies. As a result of the settlement, MBIA Corp. incurred approximately $20 million in losses in the first quarter of 2007. The loss represents a reduction to MBIA Corp.s expected recoveries for claims it has paid to date under its policies and will be covered by MBIA Corp.s unallocated loss reserves.
The District Court in Delaware entered a final judgment in the case implementing the settlement on March 30, 2007. The approximately $362 million of outstanding par amount of the bonds insured by MBIA Corp. were repaid in full during the second quarter of 2007.