Ambac shares jumped 53% to 19 cents in afternoon trading on Tuesday after A Wisconsin Circuit Court approved Ambac Financial Group‘s (ABKFQ.PK) main bond insurance subsidiary (Ambac Assurance Corp.) rehabilitation plan.
Reuters: “The rehabilitation plan puts $64 billion of Ambac Assurance Corp unit’s worst policies in a segregated account and limits the payment on claims to 25 percent in cash and the rest in a note due in 2020.
“The plan represents a reasonable response to the financial condition of the segregated account and Ambac generally by addressing the serious of financial hazards to policyholders, creditors and the public,” wrote William Johnston, the Lafayette County judge overseeing the plan in a Jan. 21 ruling.
Ambac, once the second-largest U.S. bond insurer, is currently in bankruptcy, having filed protection from creditors last year.
Leave a Reply