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Syncora Settles Lawsuit Against Countrywide for $375M

Another Countrywide lawsuit has been finalized, with the announcement that ""Syncora Guarantee Inc."":http://www.syncora.com/ has settled its claims with the company and its affiliates.


Syncora, a subsidiary of ""Syncora Holdings Ltd."":www.syncora.com/, received $375 million from Countrywide to conclude its litigation against the company.


In exchange for the payout, Syncora has agreed to release all claims against Countrywide and ""Bank of America Corporation"":https://www.bankofamerica.com/. An official release about the lawsuit noted that Syncora's filing originally stemmed from the ""provision of insurance in relation to five second lien transactions,"" as well as ""claims in relation to nine other first and second lien transactions.""

The statement went on to state that in wrapping up the case, Syncora transferred assets to subsidiaries of BofA, and accordingly, BofA ""transferred or agreed to transfer"" certain preferred shares, surplus notes, and other securities held by Syncora and its parent company.

Since posting its first-quarter financials, Syncora has reportedly ""remediated several credits with total cash disbursements . . .of approximately $96 million."" Comments from Syncora following the release of first-quarter data expressed the company's expectation that the ""materially positive effect"" of the surplus would be reflected in its second-quarter financial statements.

In closing, however, Syncora admitted that it continues to face ""significant risks and uncertainties,"" as per the company's latest financial analysis.

About Author: Abby Gregory


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