Assured Guaranty Corp. v. Commonwealth of Puerto Rico

Case Type:
Business
Case Status:
Affirmed
Citation:
Nos. 18-1165, 18-1166, 2019 WL 1349221 (1st Circuit, Mar 26,2019) Published
Tag(s):
Ruling:
Neither Section 922(d) nor Section 928(a) require debtors to continue payments to bondholders during the pendency of the Title III proceedings.
Procedural context:
The Financial Oversight and Management Board commenced a debt adjustment proceeding on behalf of the Puerto Rico Highway and Transportation Authority under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act. Within that debt adjustment proceeding, the financial guarantee insurers filed an amended complaint. The district court dismissed that amended complaint under FRCP 12(b)(6) because neither Section 922(d) nor Section 928(a) of the Bankruptcy Code entitled the financial guarantee insurers to the relief they sought.
Facts:
Financial guarantee insurers insured bonds from the Puerto Rico Highway and Transportation Authority.
Judge(s):
Howard, Torruella, Thompson

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