Rehabilitator Files Rules Governing Processing of Interim Cash Payments on Segregated Account Policy Claims
NEW YORKAmbac Assurance CorporationWisconsinCircuit Court
for Dane CountyJune 4, 2012
On June 4, 2012, the Rehabilitation Court issued an order (the “Interim
Cash Payment Order”) approving a motion by the Rehabilitator relating to
the commencement of interim partial distributions on Policy Claims. The
Rehabilitator has filed the Policy Claim Rules in order to facilitate an
efficient and orderly process for the submission, evaluation,
processing, and partial payment of Policy Claims in accordance with the
Interim Cash Payment Order. Policyholders may now commence submitting
Policy Claims in accordance with the Policy Claim Rules. Policyholders
that submit permitted Policy Claims in any calendar month are eligible
to receive 25% of the amount of the Policy Claim from the Segregated
Account on or around the 20th day of the following calendar month.
Accordingly, policyholders that submit permitted Policy Claims during
the month of August 2012, in accordance with the Policy Claim Rules,
will receive 25% of the amount of each permitted Policy Claim from the
Segregated Account on September 20, 2012. A copy of the Policy Claim
Rules is available at www.ambacpolicyholders.com.
No decision has been announced with respect to effectuating or amending
the Segregated Account Rehabilitation Plan or whether surplus notes will
be issued with respect to the remaining balance of unpaid Policy Claims.
The Rehabilitator has previously announced that more specific
information regarding the status of the Segregated Account
Rehabilitation Plan, including possible modifications, will be provided
as soon as appropriate.
Ambac Assurance
Ambac Assurance is a guarantor of public finance and structured finance
obligations, and is the principal operating subsidiary of Ambac
Financial Group, Inc. (“Ambac”).
Ambac, 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. On
November 8, 2010, Ambac filed a 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 Bankruptcy Court entered an order confirming
Ambac’s plan of reorganization on March 14, 2012. Ambac is not currently
able to estimate when it will be able to consummate such plan. Until the
plan of reorganization is consummated and Ambac emerges from bankruptcy,
Ambac will continue to operate in the ordinary course of business as
“debtor-in-possession” in accordance with the applicable provisions of
the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac’s
common stock trades in the over-the-counter market under ticker symbol
ABKFQ. Upon consummation of the plan of reorganization, Ambac’s existing
common stock will be cancelled and extinguished and the holders thereof
will not be entitled to receive, and will not retain, any property or
interest on account of such common stock.
Source: Ambac Assurance Corporation
Ambac Assurance Corporation
Michael Fitzgerald, 212-208-3222
mfitzgerald@ambac.com