MBIA Sues Texas Sports Authority To Cover $1B In Bonds

Law360, Houston (January 30, 2013, 5:38 PM EST) -- MBIA Insurance Corp. on Wednesday launched a suit in Texas court, alleging the Harris County – Houston Sports Authority has refused to collect revenue meant to secure $1 billion in bonds issued to finance construction of Houston’s sports venues and instead is making insurance claims to cover debt payments.

The insurer claims the Sports Authority is rapidly depleting a $55 million reserve account securing bond payments and has been relying on an insurance policy issued by MBIA unit National Public Finance Guarantee Corp. to service the bonds...
To view the full article, register now.