Ambac Says $800M Tax Row Threatens Reorganization

Law360, New York (October 13, 2011, 6:17 PM EDT) -- Bankruptcy financial product insurer Ambac Financial Group on Wednesday asked a New York judge to quickly determine the status of at least $800 million in federal tax claims against it, saying a delay could derail its plan to reorganize.

Ambac is trying to emerge from a bankruptcy it entered after the housing market collapse hammered its business insuring financial products. It said in a brief that any delay from litigating against the Internal Revenue Service might “render reorganization moot” and force it to liquidate.

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