ACA Financial Guaranty Corp. has entered into a global settlement with its structured credit counterparties that will send it into runoff, continuing to honor its outstanding claims while writing no new business, the company announced Friday.

The Maryland Insurance Administration has approved the settlement, in which 29 counterparties will receive cash and surplus notes in return for terminating transactions that ACA Financial had provided more than $65 billion in credit protection on, according to Chadbourne & Parke LLP, which represented a committee of 12 of the counterparties. (Click here to view document)

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.