Ambac Assurance Reaches $1.84 Bln Settlement On All Its Claims Against Bank Of America

(RTTNews) – Financial holding company Ambac Financial Group (AMBC), whose subsidiaries include Ambac Assurance Corp or AAC, announced on Friday that AAC has entered into an agreement to settle all of its claims against Bank of America (BAC) and related parties. $1.8 billion. This settlement significantly exceeds the compensation amount recorded in Ambac’s Q2 2022 financial statements. As a result, Ambac estimates that it will receive approximately $390 million in proceeds from the settlement after deducting the guaranteed debt reinsurance and AAC discount receipts and debt payments. Part of this profit will be reflected in the financial results of the third quarter of Ambac and the rest in the financial results of the fourth quarter of Ambac. Pursuant to its contractual obligations, AAC will repay all outstanding approximately $1.21 billion of Sitka notes (including the related call premium) and approximately $213 million of senior notes.

James Rogers

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