Ambac Set To Exit Bankruptcy After $102M IRS Deal Gets Nod
By Maria Chutchian
Law360, New York (April 29, 2013, 1:57 PM ET) -- Ambac Financial Group Inc. is set to exit bankruptcy within days thanks to a judge's approval Monday of a $101.9 million settlement with the Internal Revenue Service to end a dispute over tax liabilities from certain contracts Ambac signed years ago.
Under the deal with the IRS, Ambac will pay $1.9 million to the U.S. Department of the Treasury, while $100 million will be paid by Ambac Assurance Corp. or a segregated account of the unit. The deal limits Ambac's entitlement to claim any portion of...