FGIC Corporation Files For Chapter 11

Debtor Name:  FGIC Corporation

Year Filed:  2010

Jurisdiction:  United States Bankruptcy Court / Southern District of New York

Asset Size:  10,000,000 to 100,000,000

Case Number:  10-14215

Industry:  Insurance

The New York City-based Holding Company is represented by Kirkland & Ellis LLP.  The Debtor lists assets of approximately $11.5 million and liabilities of $391.6 million, all unsecured.

According to the petition, GE Funding Holdings, Inc. owns 100% of the Debtor's preferred stock as well as 7.7% of the common.  Via affiliates, The Blackstone Group LP and The Cypress Group LLC own 39.5% of the common each.  The largest unsecured creditor is listed as Wilmington Trust FSB with an approximate $346 million bond debt claim. (Estimate by Debtor) 

According to the Debtor's Declaration, "The deterioration in the U.S. housing and mortgage markets that began in 2007 and continues through today has had a significant adverse impact on the financial condition of the FGIC Group.  Because of a dramatic, sustained increase in the number of U.S. mortgage defaults and foreclosures, a large number of the FGIC-insured ABS CDOs and RMBS have defaulted.  As a result, during 2007, 2008 and 2009, FGIC paid claims on its insurance policies far in excess of historical levels".

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