GE Funding Holdings, Inc.

Federal Guaranty Insurance Co. (FGIC) entered into a master agreement with MBIA Insurance Corp. (MBIA) in which MBIA acquired approximately $184 billion of FGIC’s municipal bond insurance obligations. GE Funding Holdings, Inc. (GE), the owner of FGIC’s senior preferred shares, challenged the transaction alleging that it would constitute the sale of assets that were vital to FGIC. Compass Lexecon was retained by counsel for GE, Greg Danilow of Weil, Gotshal & Manges LLP and Kevin Abrams of Abrams & Laster LLP to assist in analyzing the relative risks and value of the portfolio being transferred versus the portion being retained, and the effect of such transfer on FGIC’s capitalization. Dr. Christopher Culp, supported by a team in our Chicago office, filed expert reports on GE’s behalf. The matter settled favorably before the conclusion of the hearing in Delaware.