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Genworth Rallies After Bondholders Avoid `Devastating Risk'

  • Credit-default swaps narrow as debtholders support CEO's plan
  • Approval could pave the way for more flexible restructuring
Updated on

Genworth Financial Inc. shares gained after bondholders agreed to changes sought by Chief Executive Officer Tom McInerney as he reshapes the insurer and seeks to rebound from losses on long-term care coverage.

Genworth climbed 7.6 percent to $3.26 a share at 4:01 p.m. in New York. The Richmond, Virginia-based insurer announced the bondholder approval in a statement Monday.