(Reuters) – MBIA Inc shares rose nearly 9 percent on Monday after the bond insurer said it had changed the terms of some of its debt to avoid what it called a possible default.
The company proposed the changes on Nov. 7 to eliminate the risk that it might be considered in default if a troubled insurance unit were put into rehabilitation or liquidation by the New York State Department of Financial Services.
MBIA said at the time that if there were such a default, it would have insufficient liquidity to make good on the notes and would probably immediately pursue other actions, including bankruptcy.
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