Insurance Financial Distress Situations

Sullivan & Cromwell frequently represents clients in financial distress situations involving insurers.

Highlights include representation of:

• AIG – the sale by AIG life insurance subsidiaries of distressed RMBS to an SPV whose sole member is the Federal Reserve Bank of New York (2009)
• Tinicum – equity investors in Standard Life of Indiana, in rehabilitation (2009)
• AmTrust Bank – insurance advice in connection with capital-raising proposals and in the sale of insurance brokerage business to WesBanco Bank (2009)
• MBIA – acting as lead counsel for 20 of the world’s leading financial institutions and their affiliates in their legal challenge to the recent restructuring of MBIA, including a lawsuit against MBIA in New York State Supreme Court asserting fraudulent conveyance, breach of contract and other claims and an Article 78 proceeding involving the NYID (2009)
• PMI – advice in connection with amendments to PMI’s credit facility and relating to PMI’s strategic investments (2009)
• AIG – in connection with the emergency financing plan with the Federal Reserve and the subsequent additional equity capital commitment facility and Series D Preferred Stock, and in certain potential divestiture transactions (2008-09)
• ING Groep – capital injection from the Dutch government in the form of convertible core tier 1 perpetual securities and in connection with the illiquid assets agreement with the Dutch State relating to U.S. RMBS and related assets (2008-09)
• CIFG Creditors – in a final settlement of certain credit default swaps and financial guarantee policies in connection with CIFG’s restructuring (2008)
• Ambac – represented creditors and underwriters in connection with its restructuring and equity offering as part of its capital raising strategy (2008)
• Goldman Sachs – purchase of Fidelity Mutual in rehabilitation (2008)
• Triad Guaranty – represented Lightyear Capital in Triad’s announced sale of assets and run-off (abandoned due to GSE and Illinois regulatory action) (2008)
• PMI – in negotiating a solution to Guaranty Insurance Company’s asset valuation crisis (2008)