Prepack Ch. 11 May Be Ambac's Only Hope

Law360, New York (November 2, 2010, 6:15 PM EDT) -- With Ambac Financial Group Inc. exploring a bankruptcy filing, bankruptcy specialists predict that a prepackaged Chapter 11 may be the only way to avoid a messy showdown between Wisconsin insurance regulators and senior debt holders that could spell the company's demise.

On Monday, Ambac, the parent holding company for Ambac Assurance, announced that it was in talks with debt holders about a possible prepackaged Chapter 11 filing within the next 30 days in order to avoid defaulting on a debenture issue.

If those negotiations fail, Ambac...
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