FGIC Corporation, a privately held insurance holding company, has filed a voluntary petition for relief under Chapter 11 of the US Bankruptcy Code in the Southern District of New York.
The Chapter 11 filing will enable the company to deleverage its balance sheet and restructure more than $300m of debt. As part of the filing, the company submitted a plan of reorganization and disclosure statement, and the company expects to progress quickly through the Chapter 11 case.
The company said none of its subsidiaries or affiliates, including its wholly-owned subsidiary Financial Guaranty Insurance Company (FGIC), are part of the Chapter 11 filing. FGIC has been engaged in ongoing efforts to restore FGIC’s surplus to policy holders.
The company has hired law firm of Kirkland & Ellis to assist in its restructuring efforts.