Ambac Fights To Nix IRS' $807M Tax Claim

Law360, New York (June 16, 2011, 3:06 PM EDT) -- Ambac Financial Group Inc. fought back Tuesday in New York bankruptcy court against the Internal Revenue Service's $807 million claim for taxes and interest, saying the underlying tax refunds the IRS wants back were properly awarded to the bankrupt bond insurer.

In an objection, Ambac asked the court to disallow and expunge the IRS' claim, which the debtor says is premised on the erroneous assumption that the $708 million in tentative tax refunds the IRS paid Ambac between December 2008 and February 2010 to cover carrying...
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