Bond Insurer Ambac's Ch. 11 Plan Moves Forward

Law360, New York (October 5, 2011, 2:28 PM EDT) -- A New York bankruptcy judge on Wednesday approved Ambac Financial Group Inc.'s disclosure statement, advancing a reorganization plan that calls for the bankrupt bond insurer to use money from a subsidiary to restructure some $1.68 billion in debt.

U.S. Bankruptcy Judge Shelley C. Chapman gave her approval to the disclosure statement at a morning hearing. The decision clears the way for the insurer, which faltered in the run-up to the financial crisis, to move forward with a complicated plan to stay afloat.

Ambac filed for bankruptcy...
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