The group of hedge funds that sued MBIA and its insurance subsidiaries over their restructuring continued to make their case last week, arguing that its allegations of a fraudulent conveyance should not be dismissed.

Aurelius Capital Master and other hedge funds said that the approval from the New York State Insurance Department superintendant should not prevent them from bringing their case. The lawyers for the hedge fund said the insurance regulators approved the transaction under parts of insurance law that are not related to the claims in the lawsuit and also that lawyers for MBIA "grossly overstate the nature of the superintendent's approval."

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