Ambac Nears $1B IRS Deal In Quest For Ch. 11 Exit

Law360, New York (January 5, 2012, 5:18 PM EST) -- Bankrupt bond insurer Ambac Financial Group Inc. is close to finalizing a $1.1 billion resolution to a thorny tax dispute with the Internal Revenue Service, putting an exit from bankruptcy protection within reach, the company said Wednesday.

As part of the proposed deal, Ambac is offering to make a $100 million cash payment and forgo as much as $1 billion in potential tax write-offs related to prior losses. If the agreement is reached, it would remove one of the biggest obstacles to the company's reorganization....
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