A Wachovia Corp. unit that sold insurance to protect against defaults on mortgage-backed securities is being liquidated in Bermuda and has asked a U.S. bankruptcy court to fend off its creditors.

BluePoint Re  is asking the U.S. Bankruptcy Court for the Southern District of New York to recognize the Bermuda proceeding so it can liquidate there. Approving the request would block creditors from seizing the unit's assets in the United States.

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