Ambac Files for Bankruptcy under Chapter 11 of the United States Bankruptcy Code
08 Noviembre 2010 - 4:31PM
Business Wire
Ambac Financial Group, Inc. (NYSE: ABK) (Ambac or the
Company) announced today that it has filed for a voluntary petition
for relief under Chapter 11 of the United States Bankruptcy Code
(“Bankruptcy Code”) in the United States Bankruptcy Court for the
Southern District of New York (“Bankruptcy Court”). The Company
will continue to operate in the ordinary course of business as
“debtor-in-possession” under the jurisdiction of the Bankruptcy
Court and in accordance with the applicable provisions of the
Bankruptcy Code and the orders of the Bankruptcy Court.
The Company was unable to raise additional capital as an
alternative to seeking bankruptcy protection and was also unable to
agree to terms with an ad-hoc committee of certain senior debt
holders in order to restructure its outstanding debt through a
prepackaged bankruptcy proceeding. However, Ambac has agreed to a
non-binding term sheet that will serve as a basis for further
negotiations with the ad-hoc committee and that may allow the
Company to emerge from bankruptcy more expeditiously.
As of June 30, 2010, the Company had debt outstanding amounting
to $1,622 million. As a result of the bankruptcy filing, Ambac’s
outstanding debt securities are accelerated. Upon the bankruptcy
filing, any efforts to enforce such payment obligations under the
related debt indentures are stayed pursuant to Bankruptcy Code.
In connection with the bankruptcy filing, Ambac is seeking an
interim order restricting certain transfers of equity interests in
and claims against the Company that is retroactive to the time of
filing. The purpose of the interim order is to preserve the
Company’s net operating losses (“NOLs”), which totaled
approximately $7 billion as of June 30, 2010. Under section 382 of
the Internal Revenue Code of 1986, as amended, transfers by persons
or entities holding five percent or more of the Company’s
outstanding equity interests could impair or permanently eliminate
the Company’s NOLs. Additionally, transfers of claims against the
Company by persons or entities who may receive five percent or more
of the reorganized Company’s stock pursuant to a bankruptcy plan of
reorganization may impair or permanently eliminate the Company’s
NOLs.
Pursuant to the Bankruptcy Code, the Company is seeking a
declaration that it has no tax liability for tax years 2003 through
2008 and that it is entitled to retain the full amount of the tax
refunds received for tax years 2003 through 2008.
Further details related to the bankruptcy filing will be
available in a Form 8-K to be filed by the Company with the SEC
(available at www.sec.gov or on the Company’s web site at
www.ambac.com).
Ambac will release its third quarter 2010 results on November 9,
2010, after market close.
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).
Forward-Looking
Statements
This release contains statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Any or all of management’s forward-looking statements here or in
other publications may turn out to be incorrect and are based on
Ambac management’s current belief or opinions. Ambac’s actual
results may vary materially, and there are no guarantees about the
performance of Ambac’s securities. Among events, risks,
uncertainties or factors that could cause actual results to differ
materially are: (1) the impact of the bankruptcy proceeding on
the holders of Ambac securities; (2) the unlikely ability of Ambac
Assurance to pay dividends to Ambac in the near term; (3) the
risk that holders of debt securities or counterparties on credit
default swaps or other similar agreements bring claims alleging
that the rehabilitation of the Segregated Account constitutes an
event of default under the applicable debt indenture or an event of
default under the applicable ISDA contract; (4) adverse events
arising from the Segregated Account Rehabilitation Proceedings,
including the injunctions issued by the Wisconsin rehabilitation
court to enjoin certain adverse actions related to the Segregated
Account being successfully challenged as not enforceable; (5)
litigation arising from the Segregated Account Rehabilitation
Proceedings; (6) decisions made by the rehabilitator for the
benefit of policyholders may result in material adverse
consequences for Ambac’s securityholders; (7) potential of
rehabilitation proceedings against Ambac Assurance, with resulting
adverse impacts; (8) the risk that reinsurers may dispute
amounts owed us under our reinsurance agreements; (9) possible
delisting of Ambac’s common shares from the NYSE; (10) the
risk that market risks impact assets in our investment portfolio or
the value of our assets posted as collateral in respect of
investment agreements and interest rate swap and currency swap
transactions; (11) risks which impact assets in Ambac Assurance’s
investment portfolio; (12) risks relating to determination of
amount of impairments taken on investments; (13) credit and
liquidity risks due to unscheduled and unanticipated withdrawals on
investment agreements; (14) market spreads and pricing on
insured collateralized loan obligations (“CLOs”) and other
derivative products insured or issued by Ambac;
(15) inadequacy of reserves established for losses and loss
expenses, including our inability to realize the remediation
recoveries included in our reserves; (16) Ambac’s financial
position and the Segregated Account Rehabilitation Proceedings may
prompt departures of key employees; (17) the risk of
litigation and regulatory inquiries or investigations, and the risk
of adverse outcomes in connection therewith, which could have a
material adverse effect on our business, operations, financial
position, profitability or cash flows; (18) difficult economic
conditions, which may not improve in the near future, and adverse
changes in the economic, credit, foreign currency or interest rate
environment in the United States and abroad; (19) the actions of
the U. S. Government, Federal Reserve and other government and
regulatory bodies to stabilize the financial markets; (20) likely
unavailability of adequate capital support and liquidity;
(21) credit risk throughout our business, including credit
risk related to residential mortgage-backed securities and CLOs and
large single exposures to reinsurers; (22) default by one or
more of Ambac Assurance’s portfolio investments, insured
issuers, counterparties or reinsurers; (23) the risk that our
risk management policies and practices do not anticipate certain
risks and/or the magnitude of potential for loss as a result of
unforeseen risks; (24) factors that may influence the amount of
installment premiums paid to Ambac, including the imposition of the
payment moratorium with respect to claims payments as a result of
Segregated Account Rehabilitation Proceedings; (25) changes in
prevailing interest rates; (26) the risk of volatility in
income and earnings, including volatility due to the application of
fair value accounting, required under the relevant derivative
accounting guidance, to the portion of our credit enhancement
business which is executed in credit derivative form, and due to
the adoption of the new financial guarantee insurance accounting
standard effective January 1, 2009, which, among other things,
introduces volatility in the recognition of premium earnings and
losses; (27) changes in accounting principles or practices
that may impact Ambac’s reported financial results;
(28) legislative and regulatory developments;
(29) operational risks, including with respect to internal
processes, risk models, systems and employees; (30) changes in tax
laws and other tax-related risks; (31) other factors described in
the Risk Factors section in Part I, Item 1A of Ambac’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2009 and
also disclosed from time to time by Ambac in its subsequent reports
on Form 10-Q and Form 8-K, which are available on the Ambac website
at www.ambac.com and at the SEC’s website, www.sec.gov; and
(32) other risks and uncertainties that have not been
identified at this time. Readers are cautioned that forward-looking
statements speak only as of the date they are made and that Ambac
does not undertake to update forward-looking statements to reflect
circumstances or events that arise after the date the statements
are made. You are therefore advised to consult any further
disclosures we make on related subjects in Ambac’s reports to the
SEC.
AMBAC (NYSE:ABK)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
AMBAC (NYSE:ABK)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024