The suit, filed on behalf of the Internal Revenue Service, seeks to block a state court's restructuring plan that could stop the IRS from collecting $700 million in taxes, according to a Reuters report.
Ambac Financial Group received approval in January to restructure its insurance unit -- Ambac Assurance Corp. -- a decision that would allow monoline to write new business.
The U.S. government attempted to dissolve the injunction in January and move the Ambac Assurance case to a federal court.--Written by Maria Woehr in New York.
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