NEW YORK, Oct. 5 (Reuters)—A federal judge has given Ambac Financial Group her approval to send its bankruptcy exit plan to creditors for a vote.
Judge Shelley Chapman approved the plan's outline on Wednesday in U.S. bankruptcy court in Manhattan, clearing a key hurdle in Ambac's path toward crawling out of bankruptcy.
The plan would pay secured claimants in full, but would likely wipe out equity holders. Creditors have until Nov. 23 to vote on the plan. If they approve it, it would return to the judge for a confirmation hearing on Dec. 8.
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