Ambac Positioned to Emerge from Bankruptcy
NEW YORK -- April 29, 2013
Ambac Financial Group, Inc. (“Ambac”) announced today that the United States
Bankruptcy Court for the Southern District of New York (the “Bankruptcy
Court”) approved a settlement with the United States of America (“United
States”) that brings resolution to claims filed against Ambac by the Internal
Revenue Service (the “IRS”) and related litigation. Additionally, the
Bankruptcy Court approved Ambac’s entry into an amendment to the existing tax
sharing agreement with Ambac Assurance Corporation as well as certain
modifications to Ambac’s Fifth Amended Plan of Reorganization (the “Plan”).
Ambac is scheduled to execute a closing agreement with the IRS on April 30,
2013, concurrent with its payment of $1.9 million, and the Segregated Account
of Ambac Assurance Corporation’s payment of $100 million, to the United
Ambac expects to fulfill the remaining conditions to the effectiveness of the
Plan on or before May 1, 2013 (the “Effective Date”). Pursuant to the Plan,
Ambac will distribute 45,000,000 new common shares (the “New Common”) and
5,047,138 new warrants (the “New Warrants”) to holders of allowed claims, in
full and final satisfaction of such claims, on the Effective Date. In
addition, all existing common stock of the company will be cancelled on the
Effective Date and the holders of such stock will not receive any
distributions under the Plan. Ambac has received approval from the NASDAQ OMX
Group to list the New Common and New Warrants on the NASDAQ Global Select
Market, as of the Effective Date, under the ticker symbols AMBC and AMBCW,
On November 8, 2010, Ambac Financial Group, Inc. (“Ambac”) filed for a
voluntary petition for relief under Chapter 11 of the United States Bankruptcy
Code (“Bankruptcy Code”). The Bankruptcy Court entered an order confirming
Ambac’s plan of reorganization on March 14, 2012. Until the plan of
reorganization is consummated and Ambac emerges from bankruptcy, it will
continue to operate in the ordinary course of business as
“debtor-in-possession” in accordance with the applicable provisions of the
Bankruptcy Code and the orders of the Bankruptcy Court.
Ambac’s principal operating subsidiary, Ambac Assurance Corporation, is a
guarantor of public finance and structured finance obligations.
Ambac Financial Group, Inc.
Michael Fitzgerald, 212-208-3222
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