AmbacAssurance Corp. is seeking the appointment of an interim receiverfor Puerto Rico Highways and Transportation Authority.
The company has filed a lawsuit in response to Puerto Rico Highwaysand Transportation Authority's extension of concession agreement withAutopistas Metropolitanas de Puerto Rico LLC, which can cause $115 million invalue to be extracted and diverted from PRHTA. The agreement extended the leasefor two toll highways in Puerto Rico by 10 years and reduced PRHTA's allocatedshare of toll revenues, Ambac said.
The lawsuit alleges that PRHTA improvidently extended theconcession agreement because it has no control over and is not likely toreceive any proceeds of the transaction as Puerto Rico law gives the control ofproceeds to the governor who may apply the proceeds for purposes unrelated toPRHTA. The sale of PRHTA's assets under the circumstances is another instanceof mismanagement and breach of fiduciary and contractual duties by PRHTA'sboard, Ambac said in the complaint.
PRHTA has failed to take advantage of $750 million infederal toll credits and refuses to provide contractually required financialdisclosures to Ambac, according to the complaint filed in the U.S. DistrictCourt for the District of Puerto Rico.
Ambac Assurance is a subsidiary of