Circuit Court Approves Rehabilitator's Motions
Madison, WI—At a hearing held yesterday, the Circuit Court for Dane County, Wisconsin, the Honorable William D. Johnston presiding, granted two motions brought by the Rehabilitator of the Segregated Account of Ambac Assurance Corporation. Pursuant to the first motion approved by the Court, the Segregated Account will commence cash payments of 25% of each permitted policy claim that has arisen since the inception of the rehabilitation proceedings and 25% of each policy claim to be submitted and permitted in the future. The Rehabilitator expects that these cash payments will commence during the third quarter of 2012. The second motion approved by the Court allows Ambac Assurance to exercise two call options to purchase approximately $789 million of surplus notes at prices favorable to the rehabilitation that are projected to materially increase policyholder recoveries.
The Rehabilitator is pleased that the Court's approval of these motions will enable him to take further meaningful steps forward in the rehabilitation proceedings.
The Orders are available for review at
www.ambacpolicyholders.com.