Assured Guaranty, Ambac sue Puerto Rico over debt default, clawback provisions
Jan 8 (Reuters) - Assured Guaranty Corp and Ambac Assurance Corp, insurers of Puerto Rican bonds, sued the U.S. commonwealth on Thursday over its recent debt default, bringing to reality a long-expected court battle between the island and its financial creditors.
The lawsuit, filed in U.S. District Court for the District of Puerto Rico, alleges Puerto Rico broke the law when it repurposed $163 million from revenue streams meant to pay debt at the island's infrastructure, highway and other agencies.
The infrastructure authority, PRIFA, missed a $36 million debt payment on Monday as a result of the so-called clawbacks. (Reporting by Nicholas Brown in San Juan and Rishika Sadam in Bengaluru)
© Thomson Reuters 2017 All rights reserved.