Ambac Declares Bankruptcy Without Prepack Deal

Law360, New York (November 8, 2010, 6:04 PM EST) -- Unable to raise additional capital, embattled bond insurer Ambac Financial Group Inc. filed for Chapter 11 protection Monday, a week after electing not to make a regularly scheduled interest payment on a debenture issue.

The company had hoped for a prepackaged bankruptcy filing, but in a statement it said it was unable to come to terms with an ad hoc committee of certain senior debt holders.

Nonetheless, Ambac agreed to a nonbinding term sheet that will serve as a basis for further negotiations with the ad...
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