MBIA raises money selling put-back claims
Sales involve claims related to insured loans from RFC, ResCap and GMAC
Monoline insurer MBIA (MBI) managed to distance itself from loans tied to the bankruptcy estates of Residential Funding Co., Residential Cap and GMAC.
In a securities filing, the firm says it sold claims against the estates over loans it insured for the lenders. The amount received "modestly exceeds the recoveries recorded in respect of the claims on MBIA Corp.'s balance sheet," MBIA added in its securities filing.
The insurer announced this week that it sold all claims and rights to repayment from the bankruptcy estate to cover putback claims that the insurer previously filed against RFC, GMAC and ResCap.
The sale of the claims is expected to raise an undisclosed amount of proceeds. Of that amount, $72 million will be used to help the firm repay borrowings against a $500 million credit line.
"ResCap and its wholly-owned subsidiary companies, RFC and GMAC, each filed for bankruptcy protection in May 2012, and their reorganization plan was approved in bankruptcy court on December 11, 2013," MBIA reported.