Bloomberg News

Credit Agricole Withdraws From MBIA Restructuring Lawsuits

September 11, 2011

Sept. 11 (Bloomberg) -- Credit Agricole SA agreed to withdraw from lawsuits against MBIA Inc. challenging the bond insurer’s restructuring.

The French bank discontinued proceedings, according to stipulations filed Sept. 9 in New York State Supreme Court in Manhattan. Other banks, including UBS AG, will continue legal action against MBIA, according to the documents. No explanation for the withdrawal was given.

The banks claim the bond insurer’s restructuring, which was approved by New York’s insurance department, left MBIA undercapitalized and possibly unable to pay future claims.

Stephanie Ozenne, a spokeswoman for Credit Agricole, didn’t immediately respond to an e-mail seeking comment after regular business hours.

The cases are ABN Amro Bank NV v. MBIA Inc., 601475-2009, and ABN Amro Bank NV v. Eric Dinallo, 09-601846, New York state Supreme Court (Manhattan).

--Editor: David E. Rovella

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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