Turnpike Bankruptcy Ended $37M Bond Obligations, ACA Says

Law360, New York (March 19, 2013, 6:34 PM EDT) -- ACA Financial Guaranty Corp. doesn't have to pay out on $37 million in bonds it insured to finance a South Carolina turnpike because the bonds it insured were snuffed out in the turnpike financier's bankruptcy, the monoline insurer's attorney told a New York state appeals court Tuesday.

ACA Financial had insured $200 million worth of bonds that a public-private entity called Connector 2000 Association Inc. had floated to finance the construction of a toll road in Greenville, S.C. OppenheimerFunds had bought about $37 million worth of...
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