Ambac Assurance Corporation (Ambac) announced today that a California court has approved a settlement in its litigation against the City of Hercules (the "City") and its redevelopment agency. The litigation asserted that the City had improperly diverted revenues pledged to bondholders from the redevelopment agency to the City. Under the settlement, Ambac received security in two City properties with values estimated to be well in excess of the revenues diverted. Ambac will also be paid interest and legal costs.
Peter Cain, Managing Director at Ambac, said, "Ambac pursued its rights, to the benefit of bondholders and we are pleased with the settlement."
About 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 Financial).
Ambac Financial, 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. Ambac Financial filed for a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York ("Bankruptcy Court"). Until the plan is consummated and Ambac Financial emerges from bankruptcy, Ambac Financial will continue to operate in the ordinary course of business as "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac Financial's common stock trades in the over-the-counter market under ticker symbol ABKFQ.
Contacts:
Ambac Financial Group, Inc.
Michael Fitzgerald, 212-208-3222
mfitzgerald@ambac.com
