MBIA unit: No decision yet on request to make Jan. 15 notes payment

By Caroline Salls

Pittsburgh, Jan. 8 - MBIA Inc. wholly owned subsidiary MBIA Insurance Corp. has been advised that the New York State Department of Financial Services has not yet decided whether to approve a request by the subsidiary to make the interest payment due Jan. 15 on its 14% fixed-to-floating-rate surplus notes due 2033, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

Under section 1307 of the New York Insurance Law and a fiscal agency agreement, payments on the notes can only be made with the approval of the department.

No payment becomes due without that approval, the 8-K said.

Armonk, N.Y.-based MBIA is a holding company whose subsidiaries provide financial guarantee insurance and related reinsurance, advisory and portfolio services for the public and structured finance markets as well as asset management advisory services.

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