NU Online News Service, May 18, 10:19 a.m. EDT
Bond insurer Ambac Assurance Corp. received permission from its Wisconsin regulator to purchase surplus notes the company issued in 2010, but did not get permission to pay interest on the notes.
Ambac Assurance, the principal operating subsidiary of New York City-based Ambac Financial Group Inc., says it received permission to exercise call options to purchase approximately $939 million in surplus notes the company issued in 2010. The company will pay aggregate cash value of $278 million.
The company must still receive approval from the Circuit Court of the State of Wisconsin in Dane County.
Ambac filed for Chapter 11 bankruptcy protection in 2010 after it suffered severe losses from insuring structured-financial instruments. The company received permission to reorganize in March, but it has not yet implemented the plan.
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