The financial institutions suing MBIA Inc. over what they believe is a fraudulent restructuring today filed a petition in New York State court to appeal the decision made by New York regulators that allowed the restructuring.

The petitioners have filed the action in New York State Supreme Court under Article 78 of New York Civil Practice Law and Rules. They had already filed a lawsuit against MBIA Inc. and its subsidiaries in the state's Supreme Court alleging a fraudulent conveyance that has left them with insurance from MBIA Insurance Co., which the plaintiffs believe to be "insolvent."

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.