$102M IRS Deal Moves Ambac Closer To Exiting Ch. 11

Law360, San Diego (April 8, 2013, 10:11 PM EDT) -- Ambac Financial Group Inc. and its bond insurance unit have agreed to shell out $101.9 million to the Internal Revenue Service to end a dispute with the agency over tax liabilities from certain contracts Ambac signed before the housing market collapse, a development announced Monday that puts the bond insurer closer to emerging from Chapter 11.

Ambac filed a bid with the U.S. Bankruptcy Court for the Southern District of New York to approve the settlement, in which Ambac would pay $1.9 million, while $100 million...
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