MBIA Inc. Subsidiary, National Public Finance Guarantee Corporation, Enters Into Agreement In Principle Regarding Puerto Rico Electric Power Authority
PURCHASE, N.Y., December 19, 2022--(BUSINESS WIRE)--MBIA Inc. (NYSE:MBI) (the Company) today reported that on December 16, 2022, the Company’s wholly-owned indirect subsidiary, National Public Finance Guarantee Corporation ("National") entered into an agreement in principle with the Financial Oversight & Management Board for Puerto Rico ("FOMB") relating to National's claim in the Title III proceeding of the Puerto Rico Electric Power Authority ("PREPA"). The FOMB's December 16, 2022 press release announcing the filing of the PREPA Plan of Adjustment referred to the agreement in principle, which remains subject to documentation, but no description of its terms. Bill Fallon, MBIA’s Chief Executive Officer noted, "We are pleased to have reached an agreement in principle with regards to PREPA, National's last remaining material Puerto Rico credit. While the agreement remains subject to documentation and inclusion in a Plan that must be confirmed by the Title III Court, we believe this is a positive development that further positions National to achieve a permanent resolution of PREPA and the Company to take important steps to enhance shareholder value."
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," "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; changes in general economic and competitive conditions; and the impact on our insured portfolios or business operations caused by the global spread of the novel coronavirus COVID-19. 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 and Quarterly Report on Form 10-Q, 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.
MBIA Inc., headquartered in Purchase, New York, is a holding company whose subsidiaries provide financial guarantee insurance for the public and structured finance markets. Please visit MBIA’s website at www.mbia.com.
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Greg Diamond, 914-765-3190
Head of Investor and Media Relations