(Reuters) – Ambac Financial Group Inc's attorney said on Monday the bond insurer could exit bankruptcy as soon as Wednesday after the company received court approval of a $101.9 million settlement with the Internal Revenue Service.
Judge Shelley Chapman of the U.S. Bankruptcy Court in Manhattan approved on Monday an agreement in which the U.S. government will receive $1.9 million from Ambac and $100 million from its subsidiary Ambac Assurance Corp.
Ambac also agreed to reduce by $1.1 billion its net operating loss carry-forwards, which the company could otherwise use to reduce future tax liability.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
