Ambac Files for Bankruptcy

NEW YORK ( TheStreet) -- Ambac Financial Group ( ABK) filed for Chapter 11 bankruptcy today, one week after announcing it would miss an interest payment on a portion of its outstanding debt.

The monoline insurer filed for bankruptcy in the United States Bankruptcy Court for the Southern District of New York. As of June 30, 2010, Ambac had debt of $1,622 million, according to a company statement.

Last week the company warned the board that it was declining to make an interest payment on the company's debt due November 15 .

Earlier this year, TheStreet explored what form a prepackaged bankruptcy may take in case Ambac explored that option.

More from Stocks

One-on-One With Carnival Corporation CEO Arnold Donald (Watch)

One-on-One With Carnival Corporation CEO Arnold Donald (Watch)

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Stocks Finish Higher After Release of Fed Minutes

Stocks Finish Higher After Release of Fed Minutes

Has Wall Street Completely Lost Its Mind on General Electric?

Has Wall Street Completely Lost Its Mind on General Electric?