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Assured Guaranty files lawsuit challenging Puerto Rico's executive orders related to PRHTA pledged toll revenues

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Assured Guaranty files lawsuit challenging Puerto Rico's executive orders related to PRHTA pledged toll revenues

AssuredGuaranty Ltd. filed a motion and form of complaint challenging thecommonwealth of Puerto Rico's executive orders diverting pledged toll revenuecollateral that secures the payment of bonds issued by the Puerto Rico Highways and TransportationAuthority.

Assured Guaranty said in a news release that the PRHTA toll revenuesare not subject to clawback for payment of the commonwealth's generalobligation debt under the Puerto Rico Constitution.

The lawsuit seeks relief from the stay provided by thePuerto Rico Oversight, Management, and Economic Stability . Upon a grant of relief from thePROMESA stay, the lawsuit further seeks a declaration that the Puerto RicoEmergency Moratorium and Financial Rehabilitation Act is pre-empted by federalbankruptcy law and that the executive orders diverting the pledged tollrevenues are pre-empted by PROMESA and violate the U.S. Constitution.

The lawsuit also seeks damages for the value of tollrevenues diverted and injunctive relief prohibiting the defendants from takingany further action under the executive orders.

Assured Guaranty Ltd. filed the lawsuit at the FederalDistrict Court in Puerto Rico together with units andAssured Guaranty Corp.