• Securitization and Bankruptcy: Bond Insurer's Motion to Compel Bankrupt Servicer to Transfer Servicing Rights -- Conclusion
  • March 8, 2005 | Authors: William C. Bowers; Leo T. Crowley; Margot Erlich
  • Law Firms: Pillsbury Winthrop Shaw Pittman LLP - New York Office ; Pillsbury Winthrop Shaw Pittman LLP - San Francisco Office
  • In Part 1 (February 2, 2005) and Part 2 (February 10, 2005) of this series, we described a litigation in Bankruptcy Court between Radian Asset Assurance Inc. ("Radian"), which insures a class of bonds secured by a pool of securitized mortgage loans, and American Business Credit, Inc. ("ABC"), a chapter 11 debtor that originated and serviced the loans before filing for bankruptcy. Radian commenced the litigation seeking, among other relief, an injunction to compel ABC to complete the transfer of servicing to a back-up servicer. As noted in Part 2, a second insurer, MBIA Insurance Corporation ("MBIA"), and the securitization trustee, JPMorgan Chase Bank, NA ("JPMorgan Chase"), intervened in support of Radian's motion for an injunction. The parties have now reached a settlement and are seeking Bankruptcy Court approval to finally dispose of the matter.