Plan Of Rehabilitation Filed By Wisconsin Commissioner For Segregated Account Of Ambac Assurance Corporation
Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) announced today that the Wisconsin Office of the Commissioner of Insurance (“OCI”) has filed its Plan of Rehabilitation for the Segregated Account of Ambac Assurance Corporation (“the Plan”) in Dane County Circuit Court in Wisconsin.
The Segregated Account of Ambac Assurance Corporation (“Segregated Account”) was established on March 24, 2010, at the direction of the OCI to segregate certain liabilities, primarily policies related to credit derivatives, residential mortgage-backed securities and other structured finance transactions. Policies totaling approximately $57.6 billion of net par outstanding at June 30, 2010, have been allocated to the Segregated Account.
Before the Plan can become effective, it must be confirmed in Wisconsin courts and OCI has stated that it anticipates that the court will schedule a hearing shortly to consider confirmation of the plan. Claims on Segregated Account policies remain subject to a payment moratorium until the Plan becomes effective. The Plan provides that, once it is effective, holders of permitted policy claims will receive 25% of their permitted claims in cash and 75% in surplus notes with a scheduled maturity of June 7, 2020 and bearing interest at 5.1%.
The Plan, along with the Plan Disclosure Statement, supporting exhibits and other information (including schedules of court hearings) can be found on OCI’s web site at www.ambacpolicyholders.com.About Ambac Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac's principal operating subsidiary, Ambac Assurance Corporation, a guarantor of public finance and structured finance obligations, has a Caa2 rating under review for possible upgrade from Moody's Investors Service, Inc. and an R (regulatory intervention) financial strength rating from Standard & Poor's Ratings Services. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange (ticker symbol ABK).
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