Ambac Financial Had $29.6 Million Cash at Last Month’s End
Ambac Financial Group Inc. (ABK), the holding company for a failed bond insurer, had $29.6 million in unrestricted cash as of Nov. 30, according to a report to the U.S. Bankruptcy Court in New York.
Ambac, which already has a plan to exit bankruptcy that resolves how it will share a tax benefit with its operating unit, Ambac Assurance Corp., is working out final details of its Chapter 11 plan. According to the operating report for Nov. 1 to Nov. 30 filed today, the company spent $3.6 million on reorganization costs for the month.
“The debtor is continuing negotiations with various parties regarding a proposed plan of reorganization,” and liabilities in the report are subject to settlement, lawyers for the company wrote.
Ambac lost $939.7 million from the start of its bankruptcy to Nov. 30, and including reorganization costs, such as fees for lawyers, it has a net loss of $1.02 billion, according to the report.
Unpaid fees to professionals totaled $14.9 million, according to the filing.
The company said in October that it has enough money to meet its obligations for at least five years. It sought an extension until Feb. 3 to file its own plan of reorganization.
To complete its Chapter 11 case, Ambac needs to end a dispute with the Internal Revenue Service over the way it accounts for losses on credit-default swaps. Those losses, or “net operating losses” are valued at $7 billion, according to Ambac. The company seeks to use $4.7 billion of the losses for future tax years, according to court papers.
The holding company case is In re Ambac Financial Group Inc. (ABKFQ), 10-15973, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporters on this story: Tiffany Kary in New York at tkary@bloomberg.net; Linda Sandler in New York at lsandler@bloomberg.net.
To contact the editor responsible for this story: Stephen Farr at sfarr@bloomberg.net.
Rate this Page