NU Online News Service, Aug. 16, 11:39 a.m. EDT
Creditors could become the new owners of Ambac Financial Group under the company's restructuring plans as creditors exchange their debt for Ambac's common stock, according to Moody's.
"They [creditors] could influence the insurance subsidiaries' operations," continued Moody's in its Weekly Credit Outlook, but a planned prepackaged bankruptcy of the holding company is "unlikely to have a direct material effect on the group's operating subsidiaries and their policyholders," Moody's said.
In its most recent quarterly filing, Ambac warned again that bankruptcy is likely. The company has been saying bankruptcy could be a possibility since 2009.
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