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NEW YORK, July 16 (Reuters) - The New England Patriots football team, whose debt included auction rate securities, have filed a law suit to recover fees from bond insurer Ambac Financial Group (ABK.N: ), the Boston Globe reported on Wednesday. The newspaper said an affiliate of the team, NPS LLC, refinanced the debt but is suing Ambac over $2.8 million in fees. Spokesmen for the team and for Ambac were not immediately available. Auction rate securities are long-term securities whose rates are reset at periodic short-term auctions. The auction rate market began freezing in late January amid the credit crunch, and issuers faced unexpectedly high interest rates demanded by investors. In February, a market source told Reuters the football team had $71 million in taxable auction rate debt. The Patriots were forced pay a 20 percent... [read full story]
