Merrill Lynch is suing XL Capital Assurance and not XL Capital, contrary to "erroneous" reports
XL Capital has announced that based on numerous erroneous press reports, it sought to clear up confusion in the media regarding the lawsuit filed by Merrill Lynch International against Security Capital Assurance Ltd's subsidiary, XL Capital Assurance Inc.
The lawsuit relates to certain credit default swap transactions entered into by trusts and insured by XLCA following SCA's IPO in August 2006.
XL Capital Ltd is not a party to such lawsuit. XLCA is not a subsidiary of XL. Pursuant to a transition agreement entered into at the time of the IPO, SCA is permitted to use the "XL" name until August 2008. XL owns approximately 46% of the common equity interest of SCA.
As the above dispute is between Merrill Lynch International and XLCA, any queries regarding the lawsuit should be referred directly to the parties to such lawsuit.