Blackstone still has hope for FGIC

NEW YORK (Reuters) - Private equity company Blackstone Group's (BX.N: Quote, Profile, Research, Stock Buzz) chief operating officer, Tony James, said on Thursday the group was not giving up on its investment in troubled bond insurer FGIC Corp.

FGIC said earlier in May it had received proposals from a range of strategic partners, reinsurers and private equity firms to strengthen its capital position.

Blackstone wrote its investment in FGIC down to close to zero a quarter ago.

"We are not giving up on the company by any means," James said on a conference call on Thursday to discuss the company's first quarter earnings. "We continue to work to preserve that company and maybe make a good return on the investment."

Blackstone owns FGIC alongside PMI Group (PMI.N: Quote, Profile, Research, Stock Buzz), Cypress Group and CIVC Partners LP.

(Reporting by Megan Davies; Editing by Andre Grenon)