Bond Insurer Gets Reorg Plan Condition Deadline Extended
Ambac Financial Group has gotten a deadline for satisfying a condition of its reorganization plan extended.
The Department of Justice, on behalf of the Internal Revenue Service, extended the date by the condition must be met.
The condition was set to be met by March 14, but the government agencies have approved an extension through June 12.
The bankrupt bond insurer, which was hit hard by claims related to loosely underwritten mortgage-related securities that severely underperformed during the downturn, has a reorganization plan but “is not currently able to estimate when it will be able to consummate” it.