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Bond insurer Ambac is close to bankruptcy


HB NEW YORK. He stands with billions in debt standing U.S. bond insurers Ambac verge of bankruptcy. Currently, a committee will talk with creditor priority over a pre-bankruptcy plan, Ambac would allow for rapid debt relief, said that with the largest providers in the industry owned company in New York.

If you can not agree in the near future, Ambac will make before the end of the request for bankruptcy protection (Chapter 11). Ambac was the end of June with 1.6 billion dollars (1.1 billion euros) in debt.

A year ago, Ambac had claims to be threatened with insolvency. Now, the company stated that the management had already decided in the past week, on Monday, to pay the interest due on debt securities not after it had not been able to raise fresh capital.

Ambac shares tumbled by 23 percent premarket. Large bond insurers in the United States suffer from the failure of risky mortgage securitizations in the U.S. housing crisis.

But not only Ambac struggling to survive. Last week came the shares of Assured Guaranty and Syncora under the wheels after Standard & Poor’s removed the key AAA credit rating for Assured. Syncora also warned against a liquidity problem that could arise in connection with mortgage-backed securities come to the company.

S & P downgrades founded with the declining demand for bond insurance. Assured said, however, that it complied with all requirements for the AAA-rated and there are clear signs of better business. The stock crashed yet. The same applies to Syncora papers that crashed in just one day around 17 percent. Assured was because of problems with competitors such as Ambac and MBIA de facto the last provider, the new bonds insured.