Ambac Settles NYC's $117M Tax Claim For $3.2M

Law360, New York (September 2, 2011, 1:50 PM EDT) -- Bankrupt Ambac Financial Group Inc. on Thursday settled for $3.2 million New York City's nearly $117 million tax claim against it, clearing a critical roadblock in the way of the bond insurance holding company's reorganization efforts.

The company filed a motion for approval of the settlement, under which it will pay the New York City Department of Finance $2 million in cash right away and surrender $1.2 million in tax credits. The city's demand for the money was a priority claim and therefore would have needed...
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