Market Overview

National Public Finance Guarantee Corporation Commences Legal Action Seeking to Lift PROMESA Litigation Stay to Allow for the Appointment of a PREPA Receiver for the Protection of Customers and Creditors


Action Follows Successful Appeal of Title III Court Ruling That
Had Denied a Similar Motion Made in 2017

Receiver Necessitated by Chronic and Ongoing Mismanagement and
Undue Political Influence at PREPA

National Public Finance Guarantee Corporation ("National"), an indirect
subsidiary of MBIA Inc. (NYSE:MBI), today announced that National,
Assured Guaranty Corp., Assured Guaranty Municipal Corp., and Syncora
Guarantee Inc. ("the Creditor Group"), have filed a motion in the U.S.
District Court for the District of Puerto Rico to lift the PROMESA
litigation stay that will allow the Creditor Group to seek to enforce
its right to compel the appointment of an independent receiver for the
Puerto Rico Electric Power Authority ("PREPA"). The Creditor Group filed
a similar motion in July 2017 that was denied by the District Court. The
new motion follows a successful appeal of that denial, as the First
Circuit Court of Appeals recently vacated the District Court's decision
and remanded the case for further proceedings.

The appointment of a receiver, which would assume operational control of
PREPA to protect the interests of PREPA's customers and creditors, is
necessitated by the utility's well-documented history of mismanagement
and undue political interference in its operations, the combined results
of which were laid bare by Hurricanes Irma and Maria.

"Successfully transforming PREPA is critical to the future of Puerto
Rico and its citizens," said Bill Fallon, CEO of National Public Finance
Guarantee Corporation. "However, PREPA's current governance structure is
incompatible with achieving that goal. Political meddling in PREPA's
affairs has resulted in five different chief executives in the past
thirteen months, a management team made up of political operatives
rather than utility experts, a board of directors that is beholden to
political forces and conflicts of interest throughout the organization.
The end result is an overstaffed yet underskilled utility lacking in
transparency. PREPA has failed to collect $3.4 billion in receivables
while it sits in bankruptcy, openly defies the orders of its regulator,
and subjects its customers to frequent outages and long repair times. It
is inconceivable that PREPA can transform itself or attract the
necessary private investment to do so under the current circumstances.
An independent receiver will insulate PREPA from political influence,
stabilize the company's operations and set it on a path for future
success. The people of Puerto Rico and all of PREPA's stakeholders
deserve nothing less."

Bondholders holding at least 25 percent in principal amount of the PREPA
bonds outstanding have a statutory right to the appointment of a
receiver following an event of default. The Creditor Group represents
approximately 27 percent of the outstanding bonds.

Forward-Looking Statements

This release includes statements that are not historical or current
facts and are "forward-looking statements" made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. The words "believe," "anticipate," "project," "plan," "expect,"
"estimate," "intend," "will likely result," "looking forward" or "will
continue," and similar expressions identify forward-looking statements.
These statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from historical earnings
and those presently anticipated or projected, including, among other
factors, the possibility that MBIA Inc. or National will experience
increased credit losses or impairments on public finance obligations
issued by state, local and territorial governments and finance
authorities that are experiencing unprecedented fiscal stress; the
possibility that loss reserve estimates are not adequate to cover
potential claims; MBIA Inc.'s or National's ability to fully implement
their strategic plan; and changes in general economic and competitive
conditions. These and other factors that could affect financial
performance or could cause actual results to differ materially from
estimates contained in or underlying MBIA Inc.'s or National's
forward-looking statements are discussed under the "Risk Factors"
section in MBIA Inc.'s most recent Annual Report on Form 10-K, which may
be updated or amended in MBIA Inc.'s subsequent filings with the
Securities and Exchange Commission. MBIA Inc. and National caution
readers not to place undue reliance on any such forward-looking
statements, which speak only to their respective dates. National and
MBIA Inc. undertake no obligation to publicly correct or update any
forward-looking statement if it later becomes aware that such result is
not likely to be achieved.

National Public Finance Guarantee Corporation, headquartered in
Purchase, New York is the world's largest U.S. public finance-only
financial guarantee insurance company, with offices in New York and San
Francisco. Please visit National's website at

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