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Materials Relating to Proposed Exchange Transaction

The Wisconsin Office of the Commissioner of Insurance ("OCI"), acting as the Rehabilitator of the Segregated Account of Ambac Assurance Corporation (the "Segregated Account"), announced that certain materials will be posted on this website relating to the Proposed Exchange Transaction that has been agreed upon by a majority of affected stakeholders for a durable plan of exit of the Segregated Account from the Rehabilitation.

These materials will be accessible through the FAQ and Proposed Exchange Transaction links on the vertical menu at the right side of the home page and will be updated from time to time, as appropriate.

As previously announced, the Rehabilitator and the Office of the Commissioner of Insurance are supportive of the transaction and it is the intent of the Rehabilitator to file with the Rehabilitation Court a plan for exit of the Segregated Account from Rehabilitation.


Related Announcements and Court Documents

August 4, 2017: Announcement

Rehabilitator Listening Session Information

The Special Deputy Commissioner ("SDC") will be holding a listening session in New York at 10:30 am on August 24, 2017, to provide interested parties with a forum to provide feedback and ask questions related to the Rehabilitator's support for Ambac Assurance Corporation's proposed exchange transaction to facilitate the Segregated Account's successful exit from rehabilitation.

If you are an interested party and wish to attend the listening session, please contact Daniele Thompson via email at dst@makoconsult.com no later than Friday, August 17, 2017, with the names and contact information of the attendees. Interested parties will be limited to two representatives per organization.

Interested parties wishing to attend will receive a letter confirming their attendance, together with specifics on the meeting location and structure of the listening session.


July 19, 2017: Notices

Notice of Hearing setting confirmation hearing for 12/12/2017 through 12/14/2017
Notice of Hearing setting pretrial hearing for 11/30/2017

FAQ's

  1. Does OCI support the currently proposed Transaction?

    OCI believes the Transaction is in the best interests of all policy beneficiaries and stakeholders and provides for a durable exit from Rehabilitation. The Rehabilitator believes this Transaction, including the consideration to be provided to the Deferred Amount holders (sometimes referred to as Deferred Payment Obligation (DPOs)) and General Account Surplus Note holders, is superior to maintaining the status quo over many years in the hope of achieving a better result.

  2. I am a General Account policy holder, how will the exchange and exit from rehabilitation affect me?

    AAC has paid all valid General Account policy claims in full since the beginning of the Rehabilitation. This treatment will continue following the exit from Rehabilitation.

  3. When will Deferred Amount holders and Surplus Note holders be paid as part of the exchange and in what form?

    Both Deferred Amount holders and Surplus Note holders will receive consideration upon closing of the Transaction, which is expected to occur in the first quarter of 2018.

    The Transaction allows policyholders to receive payment in full on all future presented claims, and settles currently outstanding obligations at 93.5 cents on the dollar, composed of

    • 40 cents on the dollar in cash,
    • 41 cents on the dollar in tradeable Secured Notes, and
    • 12.5 cents on the dollar in surplus notes

  4. To support the Transaction, what actions are necessary for holders to take and when?

    If you own General Account Surplus Notes and wish to support the Transaction:

    • More information will be provided to the market as the process progresses. Until that time, you may support the Transaction by executing a joinder to the Rehabilitation Exit Support Agreement with AAC.
      • This can be done by contacting Sharon Smith at Ambac Assurance Corporation, Chief of Staff and Senior Managing Director, via email at ssmith@ambac.com.
    If you are a DPO holder and wish to support the Transaction, you can:
    • Contact the Trusts that issued the securities that have Deferred Amounts, and advise the Trustee that you support the Transaction
      • This should be done as soon as practical
    • Contact Daniele Thompson of Mako Consulting LLC, an advisor to the SDC, via email at dst@makoconsult.com to sign a non-objection letter.

  5. Will interested parties have an opportunity to provide feedback on the proposed Transaction prior to court action?

    Interested parties have several forums to provide feedback in respect of the proposed Transaction. First and foremost, the Special Deputy Commissioner and his advisors will hold a listening session at 10:30 am on Thursday, August 24, 2017 in New York City, details to follow. In addition, interested parties with questions for the Rehabilitator can contact Daniele Thompson of Mako Consulting LLC, an advisor to the SDC, via email at dst@makoconsult.com.