News from Bloomberg:

UBS AG (UBSN), Bank of America Corp. (BAC) and about a dozen other banks won reinstatement of a lawsuit against MBIA Inc. challenging the 2009 restructuring of its insurance unit that guaranteed toxic debt.

The state Court of Appeals in Albany, New York’s highest court, announced its decision yesterday, overturning a lower- court ruling.

A state appellate court in January dismissed the suit by the banks, which claimed the bond insurer’s restructuring was intended to defraud policyholders. The banks claim the restructuring was a “fraudulent conveyance” that left MBIA undercapitalized and possibly unable to pay future claims.

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