Ambac Financial Group Inc. said it’s pursuing with an ad hoc committee of senior debt holders a restructuring of its outstanding debt through a prepackaged bankruptcy proceeding. The information was disclosed in a regulatory filing.
The company said if it’s unable to reach agreement on a prepackaged bankruptcy “in the near term,” it plans to file for bankruptcy under Chapter 11 of the U.S. bankruptcy code before the end of the year.
The company said its directors decided not to make a regularly scheduled interest payment on Ambac’s 7.5 percent debentures due May 1, 2023. That interest payment was scheduled to be made today, the filing said.
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