The word "restructuring" has apparently shifted in meaning. Now, it seems, the term is defined as "the light and noise accompanying the inter-atmospheric breakup of a probably doomed firm."
MBIA Inc., the world's largest bond insurer, is separating its municipal bond unit into a new operation as it looks to rebuild a business shattered by the subprime mortgage crisis.
The plan met with a mixed reaction on Wednesday. Because the unit could win new business for MBIA, shareholders cheered the move and sent the company's shares up 33 percent in mid-day trading.
But rating agency Standard & Poor's downgraded the company's main insurance unit to three steps above junk and rated the new unit "AA minus," citing "uncertain business prospects."
Apparently, the light is sufficiently pretty and the noise sufficiently melodic, as the stock is enjoying a revival.
MBIA shifts bond insurance business to new company [Reuters]