Ambac files for Chapter 11 bankruptcy

November 17, 2010 by · Leave a Comment
Filed under: Industry News 

This story almost passed by without me noticing it.  It has been 2 years since we have had much news from the mono-line insurers.  Looks like Ambac has missed some debt payments and this forced their hands into bankruptcy to try and re-negotiate with their creditors.  This is going to affect the whole sector and we will likely see another insurer go under or some consolidation.

Forbes – Ambac Financial Group said late Monday it has filed for Chapter 11 bankruptcy, after failing to reach agreements with lenders on how to repay its debt. As of June 30, Ambac had $1.6 billion in debt outsanding.

The bond insurer said it will continue to operate in the ordinary course of business as it restructures. Ambac Financial Group will ask the bankruptcy court to restrict transfers of shares and claims to preserve $7 billion in net operating losses, and is seeking a declaration that is has no tax liability from 2003 to 2008, and is entitled to retain the full amount of refunds received for those years.

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