March 14, 2012 / 8:48 PM / 6 years ago

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.

Our Standards:The Thomson Reuters Trust Principles.
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