Insurers of around $3 billion in Puerto Rico highway bonds will ask an appeals court to let them continue their fight for toll revenues on Thursday, this time with the goal of pursuing their case outside of the court overseeing the commonwealth’s debt restructuring process, Reuters reported. The bond insurers, which include Assured Guaranty and Ambac Assurance, are urging the 1st U.S. Circuit Court of Appeals to reverse U.S. District Judge Laura Taylor Swain’s September decision rejecting their requests for relief from the automatic stay that protects bankrupt entities against litigation and attempts to collect on debts during the bankruptcy process. They sought the relief in the hope of bringing their revenue-related claims to another court after Swain rejected earlier attempts to make their case in Puerto Rico’s bankruptcy-like proceedings, known as Title III. The bond insurers, represented by Cadwalader Wickersham & Taft, Weil Gotshal & Manges, Milbank and Hogan Lovells, say that Judge Swain “misunderstood” their rights.
