Mbia Inc 8-K, filed Aug 30, 2023
Mbia Inc (MBI)
About this 8-K
Mbia Inc filed this 8-K on August 30, 2023.
Items reported
- Item 8.01: Other events
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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Forward-Looking Statements
Any forward-looking statements made in this Form 8-K reflect MBIA Inc.’s (the “Company”) current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from adverse developments in Puerto Rico or at PREPA, an inability or failure of creditors to negotiate and implement a consensual restructuring, litigation that has already been initiated or may be initiated in the future, governmental or legislative action or inaction by Puerto Rico or the United States, other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of January 31, 2023. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| Item 8.01 | Other Events. |
On August 25, 2023, the Company’s wholly-owned indirect subsidiary National Public Finance Guarantee Corporation (“National”) entered into the First Amendment to the PREPA Plan Support Agreement (the “Amended PSA”) with the Financial Oversight and Management Board for Puerto Rico (“FOMB”), on behalf of itself and as the sole Title III representative of the Puerto Rico Electric Power Authority (“PREPA”). National had entered into the original PREPA Plan Support Agreement on January 31, 2023, to resolve the treatment of its claims related to insured PREPA revenue bonds in the then extant PREPA Plan of Adjustment filed with the Title III Court on December 16, 2022, and the settlement of National’s participation in litigation related to such claims. On August 25, 2023, the FOMB filed its Third Amended Title III Plan of Adjustment (the “Third Amended Plan”) incorporating, among other things, the terms of the Amended PSA.
The Amended PSA provides that, upon the effective date of the Third Amended Plan, National shall receive cash, together with certain fees and expense reimbursement payments, in an amount based in part on the ultimate participation, if any, of certain currently non-accepting holders of uninsured PREPA bonds. The Amended PSA also provides National with additional consideration in the form of two types of contingent values instruments, whose value cannot be assured. The Amended PSA remains subject to a number of conditions, including (but not limited to) the Title III Court’s approval of the Amended PSA and the confirmation and effectiveness of the Third Amended Plan, as it may be further amended with the Court’s approval.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MBIA INC. | ||
| By: | /s/ Jonathan C. Harris | |
| Jonathan C. Harris | ||
| General Counsel | ||
Date: August 30, 2023