Assured Guaranty renews motion for appointment of receiver for PREPA
Assured Guaranty released comments regarding a new motion and form of complaint filed in Federal District Court in Puerto Rico today by two of its bond insurance subsidiaries, as well as National Public Finance Guarantee Corporation and Syncora Guarantee. The motion and form of complaint seek an order lifting the automatic stay to allow Assured Guaranty to seek relief before a court of competent jurisdiction, by filing the proposed complaint, to appoint a receiver for the Puerto Rico Electric Power Authority, or PREPA. Assured Guaranty stated that "PREPA is failing to fulfill its obligations to all of Puerto Rico's stakeholders, including its ratepayers and creditors. As a result of PREPA's defaults, Assured Guaranty and the other parties are entitled to the appointment of a receiver for PREPA (...) This entitlement to a receiver is automatic once PREPA's bonds default. Lifting the automatic stay and appointing a receiver for PREPA is necessary to ensure the collateral package securing PREPA's bonds is not diminished (...) Despite filing the motion, Assured Guaranty stands ready, and would prefer, to work cooperatively with the Financial Oversight and Management Board for Puerto Rico to consensually appoint a receiver for PREPA". Irrespective of PREPA's payment defaults on its bonds and its Title III bankruptcy filing, payments to holders of PREPA bonds insured by Assured Guaranty will continue to be paid without interruption for the life of the bonds.