Insurer Rails Against Stockton's Request For $100M Writedown

Law360, New York (August 1, 2012, 6:08 PM EDT) -- Assured Guaranty Ltd. said Wednesday that bankrupt Stockton, Calif., is unfairly targeting the municipal bond insurer by asking it to take a $100 million loss on the city's Assured-backed pension bonds rather than tackle pension reform.

Stockton, the largest municipality ever to file for bankruptcy in the U.S., proposed to eliminate all of the city's general fund debt payment related to the pension bonds, which would mean an 83 percent cut in payments on the $121 million in remaining pension bond principal, Assured said in a...
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