Ambac In Talks For Prepackaged Ch. 11 Plan

Law360, New York (November 1, 2010, 12:13 PM EDT) -- Embattled bond insurer Ambac Financial Group Inc. said on Monday that it would file for bankruptcy protection by the end of the year, and that it was talking with debt holders about a possible prepackaged Chapter 11 filing.

The announcement came as Ambac's board of directors elected not to make a regularly scheduled interest payment on a debenture issue due Monday. Ambac has 30 days to make the interest payment before it is considered in default on the debentures, which would allow holders of the securities...
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