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MBIA created the National Public Finance Guarantee Corporation, which assumed $5.4 billion of the MBIA Insurance Corporation's assets and its public finance obligations.
Yet another situation involving haves and have-nots is evident in the workout plan covering policyholders of the Ambac Assurance Corporation, the Ambac Financial Group subsidiary that insured municipal and structured finance obligations.
A group of 18 banks, including Morgan Stanley, objected to the restructuring in court, arguing that it might leave the insurer unable to pay out its structured finance obligations.
Friday's accord followed one on Thursday in the United States, where the United Automobile Workers union said it had reached a tentative agreement with G.M. on how to finance obligations estimated at $20 billion for retiree health care.
The U.S. explicitly warned that whatever agreement came out of this conference could not include legally binding emissions reductions goals or finance obligations.
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The fact that a region like Catalonia cannot meet its debt-financing obligations "is the big problem in this country at the moment," Mr. Rajoy said Tuesday.
In January, a judge ruled in a long-running trial that the state had not met its financing obligations to New York City schools.
Some of them have tapped an 18 billion euro emergency fund set up by the central government to meet their debt financing obligations and pay suppliers of health care and other basic services.
Mr. Rehn met on Monday with the Spanish prime minister, Mariano Rajoy, and the economy minister, Luis de Guindos, but refused to speculate afterward whether the Spanish government would be pushed into asking for more European help to meet its debt financing obligations.
They have now followed up with their own filing, which alleges that Seven Seas "concocted the story told in its Complaint" as it "either ran out of, or never had, the funds necessary to meet its financing obligations".
Now the downturn has claimed a prominent victim: the Las Vegas Sands, the struggling casino operator run by Mr. Adelson, said it was suspending construction on sites in Macao as it struggled to meet financing obligations.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com