Major FGIC Policyholder Praises NY Supreme Court Confirmation of FGIC Rehabilitation Plan

NEW YORK, June 12, 2013 /PRNewswire/ -- Fir Tree Partners, a $10 billion private investment firm and a major policyholder of Financial Guaranty Insurance Company ("FGIC") since 2008, today praised the confirmation of the company's Plan of Rehabilitation by Judge Doris Ling-Cohan of the Supreme Court of the State of New York. The Plan, which was confirmed yesterday, is expected to go effective by the end of August 2013.

As a major FGIC policyholder, Fir Tree's activism in the reorganization over the past four years helped create an innovative, strategic alternative to a traditional insurer liquidation, which also required the support of a diverse number of interested parties.

"The Plan's confirmation resulted in a 'win-win' alternative for policyholders, the company and its employees, and the New York State Department of Financial Services," said James Walker III, a Managing Partner at Fir Tree. "The Superintendent, the Department of Financial Services, and the company deserve full credit for working together to gain confirmation for a plan that provides fair and equitable treatment for all of FGIC's policyholders."  

Evan Lederman, Associate General Counsel at Fir Tree said, "The Plan confirmed by the Court represents a unique and innovative structure to settle current and future claims, and once the Plan becomes effective FGIC will emerge as a stronger insurance company.  The confirmation of the Plan yesterday was the culmination of countless hours of hard work by many diverse parties, and it was a landmark day for the company and its policyholders."

On June 28, 2012, Benjamin M. Lawsky, Superintendent of Financial Services of the State of New York, was appointed as the Rehabilitator of FGIC. On September 27, 2012, the Rehabilitator filed a proposed Plan of Rehabilitation for FGIC with the Court.

About Fir Tree Partners

Fir Tree Partners, founded in 1994 and located in New York City (HQ) and Miami, is a value-oriented investment manager that manages private investment funds for endowments, charitable and philanthropic foundations, pension funds and other institutional and private investors. Fir Tree manages approximately $10 billion, invested worldwide in public and private companies and real estate across a wide variety of sectors and securities.

SOURCE Fir Tree Partners