Investors holding securities wrapped by Financial Guaranty Insurance Co. (FGIC) recently formed a policyholder group in an effort to negotiate a restructuring and avoid the insurer’s liquidation.

Once the fourth-most active bond insurer — in 2007 it wrapped $29.62 billion in municipal deals, according to Thomson Reuters — FGIC has not written any new bond insurance policies since January 2008. It suffered near-fatal losses from insuring risky mortgage assets that defaulted during the financial crisis.

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