ACA Financial Guaranty Corp. reached an agreement Sunday with 29 counterparties to halt until Feb. 19 collateral requirements, termination rights, and policy claims related to the credit derivative transactions on the bond insurer’s books.

The extension was announced by the bond insurer’s parent, ACA Capital Holdings Ltd., after executives bought time from the counterparties with whom the company has transactions. A press release said the company “continues to work closely with [counterparties] to develop a permanent solution to stabilize its capital position.”

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