Debt Investors Seek To Halt Ambac Asset Transfers

Law360, New York (August 31, 2010, 4:18 PM EDT) -- A group of investors in debt insured by an Ambac Financial Group Inc. insurance unit is seeking to block the parent company from drawing dividend payments and making other asset transfers from the bond insurer before their claims are fully paid.

In the motion filed Monday in the Circuit Court of Dane County in Wisconsin, the policyholders are seeking permission to file suit to block Ambac from “fraudulently” accepting dividend payments from its unit Ambac Assurance Corp. and using its net operating losses without fair consideration...
To view the full article, register now.