ALAMEDA, Calif. — Las Vegas Monorail Co. bondholder Eaton Vance has broken with other large holders of the bankrupt project’s debt to challenge the settlement that trustee Wells Fargo Bank NA negotiated with Wisconsin state regulators to commute the monorail’s bond insurance policy.

The nonprofit monorail operator and the parent of insurer Ambac Assurance both filed for Chapter 11 bankruptcy during 2010, leaving holders of the bonds with debt that isn’t being serviced and insurance that isn’t paying claims. Ambac wrapped the $451 million first-tier revenue bonds, for which the Nevada Department of Business and Industry was conduit issuer.

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