Syncora Says $496M Toll-Road Bonds Had Hidden Potholes

Law360, New York (April 18, 2012, 6:59 PM EDT) -- Monoline insurer Syncora Guarantee Inc. sued several infrastructure investment companies, including the securities arm of Macquarie Group, in New York state court Wednesday for allegedly downplaying the risk of $496 million worth of toll road-backed bonds it insured.

Syncora contends it was hoodwinked into providing financial guarantee insurance policies for the principal and interest on senior secured bonds issued in 2006 by American Roads LLC, a former Macquarie unit and privately held operator of toll road facilities across the U.S. and Canada. The insurer says the...
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