Lexington Insurance Company (LIC), a wholly owned subsidiary of American International Group (AIG), which provided insurance policies on future-flow film securitizations by U.K.-based Flashpoint Inc., has told trustees in the securitizations that it will not honor the insurance policies on two deals that used insurance as a substitute for credit support.
In response, Standard & Poor's recently downgraded from AAA to CCC-minus Hollywood Funding No. 5 ($48 million) and Hollywood Funding No. 6. ($100.7 million). Credit Suisse First Boston was lead manager on both of these private transactions.