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Ambac Financial Agrees to Extend Plan Settlement Deadline and Reschedules Disclosure Hearing

^{Published on 2011-07-26 13:26:05 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Ambac Financial Group, Inc. (OTC: ABKFQ) (aAmbac Financiala) today announced that, at the request of the Commissioner of Insurance of the State of Wisconsin (aOCIa), and with the approval of Ambac Assurance Corporation (aAmbac Assurancea), it has agreed to provide additional time for OCI to complete its analysis of the Plan of Reorganization of Ambac Financial Group, dated July 6, 2011 (the aPlana), as filed with the U.S. Bankruptcy Court (aBankruptcy Courta). In addition, the agreement by Ambac Financial to provide additional time will allow Ambac Financial, the Official Creditora™s Committee of Ambac Financial, Ambac Assurance and OCI to mediate the outstanding issues between Ambac Financial and Ambac Assurance under the Plan.

Under the original terms of the Plan, Ambac Assurance and OCI could accept a settlement proposed in the Plan by filing notice with the Bankruptcy Court by July 29, 2011 (aPlan Settlement Deadlinea). Pursuant to the agreement among Ambac Financial, Ambac Assurance, OCI, and the Official Creditora™s Committee of Ambac Financial (aAgreementa), the Plan Settlement Deadline has been changed to August 25, 2011. As a consequence of the Agreement, the Bankruptcy Court hearing relating to the approval of the Disclosure Statement, originally scheduled for August 12, 2011, has been rescheduled for September 8, 2011, and the Bankruptcy Court hearing relating to the confirmation of the Plan has been rescheduled for November 8 and 9, 2011.

The terms and conditions of the Agreement are more fully described in a motion filed with the Bankruptcy Court today. A copy of the Bankruptcy Court motion can be obtained at [ www.kccllc.net/ambac ] under the heading "Court Documents."

About Ambac

Ambac Financial Group, Inc., 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 filed for a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. The Company will continue to operate in the ordinary course of business as adebtor-in-possessiona 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 Group, Inc.a™s common stock trades in the over-the-counter market under the ticker symbol ABKFQ.

Ambac's principal operating subsidiary, Ambac Assurance Corporation, is a guarantor of public finance and structured finance obligations.