MBIA Settles with UBS over Restructuring

UBS AG has agreed to settle litigation against MBIA Inc, challenging the bond insurer's 2009 restructuring, people familiar with the matter said on Thursday.

March 15, 2012

March 15 - UBS AG has agreed to settle litigation against MBIA Inc, challenging the bond insurer's 2009 restructuring, people familiar with the matter said on Thursday.

The settlement calls for credit default swaps to be commuted in exchange for a cash payment, the people said. The people declined to be identified because the settlement has not been confirmed publicly.

UBS had earlier revealed in a regulatory filing that it had agreed to a settlement in principle with a monoline insurer, and described some of its terms. That filing did not identify MBIA by name.

MBIA and UBS had no immediate comment. (Reporting By Karen Freifeld; Editing by Gerald E. McCormick)