Syncora Holdings Ltd. Announces Syncora Guarantee Inc. Jefferson County Settlement PR Newswire NEW YORK, Dec. 4, 2013 NEW YORK, Dec. 4, 2013 /PRNewswire/ -- Syncora Holdings Ltd. ("Syncora") today announced that its wholly owned, New York financial guarantee insurance subsidiary, Syncora Guarantee Inc. (the "Company"), has settled all litigationandclaims and that it has commuted all its insurance policies issued in connection with the Jefferson County, Alabama ("Jefferson County") Sewer Warrants (the "Warrants") pursuant to the consensual plan of debt adjustment of Jefferson County (the "Plan"). As provided by the Plan, the Company also received a partial recovery on claims totaling $246 million, including claims with respect to certain Warrants it owned as a result of past payments under its insurance policies. Going forward, the Company will have no insurance exposure to, and expects to hold no warrants or other debt instruments issued by, Jefferson County. In connection with the Plan, the Company was released by all relevantparties from any legal claims against it in connection with its insurance of the Warrants. In exchange for the commutation of its insurance policies and partial payment in respect of the Warrants it owned, the Company released Jefferson County and JP MorganChase Bank N.A. and JP Morgan Securitiesfrom all legal claims held by the Company against them in connection with the Warrants. The Company's losses with respect to Jefferson County are within its established loss reserves. While the combined effects of the foregoing positively affect the Company's cash position, it is not expected to mitigate the potential "liquidity mismatch" between the Company's expected future medium to long-term claim payments and recoveries relating to such claims and the other significant risks and uncertainties, as described in the Company's most recent financial statements. About Syncora Holdings Ltd. Syncora Holdings Ltd. (OTC: SYCRF) is a Bermuda-domiciled holding company. Syncora Guarantee Inc. and Syncora Capital Assurance Inc. are wholly owned subsidiaries of Syncora Holdings Ltd. Contact Michael Corbally 1 212 478 3400 email@example.com FORWARD-LOOKING STATEMENTS This release contains statements about future results, plans and events that may constitute "forward-looking" statements. You are cautioned that these statements are not guarantees of future results, plans or events and such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. These factors include, but are not limited to: the performance of invested assets; payment of claims on guaranteed obligations, including residential mortgage-backed securities ("RMBS"); and actions that may be required in order to meet anticipated liquidity and surplus needs; the Company's ability to maintain minimum policyholders' surplus; higher losses and adverse development of reserves on guaranteed obligations due to continued deterioration in the credit and mortgage markets; reduced availability of funds due to the purchase of certain insured bonds and the potential inability to convert those assets to cash at their carrying value; reduced availability of funds due to capitalization ofSyncora Capital Assurance Inc.; reduced availability of funds due to consideration paid in connection with the master transaction agreement between the Company and certain financial counterparties to the Company's CDS contracts (the "2009 MTA"); the suspension of writing all new business; uncertainty as to the fair value of credit default swap ("CDS") contracts and liabilities thereon; decision by the Company's regulators to take regulatory action such as rehabilitation or liquidation of the Company at any time;Syncora Capital Assurance Inc.being required to make mark-to-market termination payments under its CDS contracts; the Company's ability to continue as a going concern; bankruptcy events involving counterparties to CDS contracts; the potential loss of certain control rights under certain financial guarantee insurance; non-payment of premium and make wholes owed or cancellation of policies; impact of the non-payment of dividends onSyncora's series A preference shares on the composition ofSyncora's Board of Directors; uncertainty in portfolio modeling which makes it difficult to estimate potential paid claims and loss reserves; potential adverse developments atSyncora Capital Assurance Inc.and recapture of business to be ceded toSyncora Capital Assurance Inc.under the 2009 MTA; the financial condition ofSyncora Guarantee (U.K.) Limitedand action by thePrudential Regulation Authority and the Financial Conduct Authority; requirement of the Company to provideSyncora Guarantee (U.K.) Limitedwith sufficient funds to maintain its minimum solvency margin; challenges related to 2009 MTA and any commutations and releases; defaults by counterparties to reinsurance arrangements; the interconnectedness of risks that affect the Company's reinsurance and insurance portfolio and financial guarantee products; termination payments related to less traditional products, including CDS contracts, possibly in excess of current resources; exposure to large refinancing risks; nonpayment of premiums by policyholders; changes in accounting policies or practices or the application thereof; changes in officers or key employees; further deterioration in general economic conditions, including as a result of the financial crisis as well as inflation or deflation, interest rates, foreign currency exchange rates and other factors and the effects of disruption or economic contraction due to catastrophic events or terrorist acts; the commencement of new litigation or investigations or the outcome of current and new litigation or investigations; legislative or regulatory developments, including changes in tax laws and regulation of mortgages; losses from fraudulent conduct due to unconditional and irrevocable nature of financial guarantee insurance; problems with the transaction servicers in relation to structured finance transactions; limitations on the availability of net operating loss carry forwards; uncertainty as to federal income tax treatment of CDS contracts; liquidity risks including due to timing of claims payments and reduced availability of funds undertakings with the New York State Department of Financial Services ("NYDFS"); conflicts of interests with significant shareholders ofSyncora; limitations on the transferability of the common shares ofSyncoraand other additional factors, risks or uncertainties described inSyncora's historical filings with theNYDFSor theSecurities and Exchange Commission, including in its Annual Report on Form 10K for the fiscal year endedDecember 31, 2008, as amended and inSyncora's,the Company'sand Syncora Capital Assurance Inc.'s financial statements posted on its website atwww.syncora.com. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date they are made.Syncoradoes not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. SOURCE Syncora Holdings Ltd. Website: http://www.scafg.com
Syncora Holdings Ltd. Announces Syncora Guarantee Inc. Jefferson County Settlement
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