MBIA Wins Injunction in Bangkok Civil Court Against SLC Leasing Company Limited.ARMONK, N.Y.--(BUSINESS WIRE)--September 9, 1998--MBIA Insurance Corporation, a subsidiary of MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Inc. (NYSE NYSE See: New York Stock Exchange : MBI MBI Management Buy-In MBI Moody Bible Institute MBI Mathematical Biosciences Institute MBI Modular Building Institute MBI Mechanical Breakdown Insurance MBI Molecular Biology Institute MBI Maslach Burnout Inventory (psychometrics) ), announced today that it has been granted an injunction against SLC Leasing Company Limited (SLC), formerly SITCA SITCA Samui Institute of Thai Culinary Arts (Thailand) Leasing Company Limited. SLC is a servicer on the SITCARS Funding Limited securitization, an MBIA-insured transaction with $20.5 million of net par outstanding. MBIA terminated SLC, effective August 14, 1998, as servicer of the transaction because SLC violated covenants in the servicing agreement with MBIA and various other parties. Subsequently, SLC began withholding payment to investors. The injunction orders SLC to remit to the trustee any monies collected under the auto loan contracts in connection with this transaction. TISCO TISCO Tata Iron and Steel Company Limited TISCO Tractor Implement Supply Company Leasing Company Limited, a Bankers Trust subsidiary, is now servicing the transaction. Following the granting of the injunction, SLC brought legal action against MBIA and others. MBIA believes the lawsuit has no merit and will defend its interests in this matter. "The SITCA securitization, as with all MBIA-insured structured transactions, has been underwritten to withstand significant stress and is performing as expected," says MBIA president Richard L. Weill. "MBIA is actively monitoring this situation and at this time does not expect to incur losses on this deal. MBIA Inc., through its subsidiaries, is the world's preeminent financial guarantor and a leading provider of specialized financial services. MBIA provides innovative and cost-effective products and services that meet the credit enhancement, financial and investment needs of its public and private clients, domestically and internationally. MBIA Insurance Corporation has a claims-paying rating of Triple-A from Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Standard & Poor's Ratings Services, Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Japan Rating and Investment Information, Inc. Please visit MBIA's web site at http://www.mbia.com.
CONTACT: Michael Ballinger - MBIA
(914) 765-3893
or
Debra Descloux - MBIA
(914) 765-3895
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion