Ambac (ABK) Gaps 23% ; Co. Commutes $16.4 bln in Debt Obligations

Ambac Financial Group Inc. (ABK) shares jumped more than 12 percent to $1.15, after advancing as much as 23 percent (day’s range: $1.17 – $1.26), the most intraday since May 28, after the bond insurer disclosed in an 8-k filing it has commuted all of its remaining $16.4 billion of exposure to collateralized debt obligations based on asset – backed securities.

In addition to the $16.4 billion commutation Ambac also said that the company commuted some other asset-backed securities, worth about $1.4 billion, for cash payments of $96.5 million.

Ambac also said it expects to commute some other securities within the next twelve months for a maximum amount of approximately $115 million of cash plus $60 million of surplus notes of Ambac Assurance Corporation.

ABK gained $0.12, or 12.14%, to $1.15 rtq at 11:07 E.T. in New York Stock Exchange rrading.

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