March 14, 2012 / 8:48 PM / in 5 years

Ambac gets court's OK on plan to exit bankruptcy

* Plan includes proposed $102 mln settlement with IRS

* IRS must accept settlement for plan to become effective

* Noteholders would get some recovery; equity wiped out

March 14 (Reuters) - Ambac Financial Group Inc gained court approval on Wednesday on a plan to emerge from bankruptcy by restructuring nearly $1.7 billion in notes and settling a key tax dispute with the Internal Revenue Service.

As part of the plan, Ambac has proposed a $101.9 million settlement with the IRS, which had challenged Ambac's tax accounting practices related to credit default swap contracts.

The settlement needs IRS approval before Ambac can officially exit bankruptcy.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below