Ambac Financial Group
Ambac Financial Group is a holding company whose principal operating subsidiary is Ambac Assurance Corporation, a Wisconsin domiciled financial guarantee insurance company. It's business was the issuance of financial guarantee insurance policies to support public finance, structured finance and international financial transactions.
On November 8, 2010, Ambac filed Chapter 11 Bankruptcy. Ambac has halted all new business and has placed it's remaining business in "run off", meaning it is only taking in premium payments and paying out claims. The insurance regulator in Wisconsin has taken Ambac Assurance's risky mortgage obligations and moved them into a Segregated Account with policy holders being awarded surplus notes, bearing interest at 5.1 % in exchange for their claims. The Segregated Account is supported by the surplus notes and the aggregate excess of loss reinsurance agreement.
Plan of Reorganization
On 7/6/2011 Ambac Financial Group filed a Plan of Reorganization for it's Chapter 11 Bankruptcy. In a debt for equity exchange, holders of senior note claims are to receive new common stock as set forth in the plan. Holders of general unsecured claims are to receive new common stock and warrants. Holders of subordinated note claims will receive warrants.
Ambac Debt
Approximate Prices
ABK.GN Ambac Assurance 5.1 due 2020 30
Senior Note Claim
ABK.GA Ambac Financial Group 9 3/8 due 8/1/2011 13
ABK.GL Ambac Financial Group 9 1/2 due 2/15/2011 13
ABK.GB Ambac Financial Group 7 1/2 due 5/1/2023 13
ABK.GH Ambac Financial Group 5.95 due 12/5/2035 13
ABK.GJ Ambac Financial Group 5.95 due 2/28/2103 $1.75
ABK.GK Ambac Financial Group 5.88 due 3/14/210 $1.75
Subordinated Note Claim
ABK.GI Ambac Financial Group 6.15 due 2/7/2087
Research on distressed debt securities is provided by Performance Plus Advisors, Inc. To receive a research report on Ambac Financial Group or any other company we follow contact us at: 727-441-1305 ext 201
Stephen P. Vlahos
Download Ambac Financial Group-28
Download Ambac Assurance December 2011-19
Download Ambac Research March-15