Questions & Answers > Plan of Rehabilitation > What does the Plan of Rehabilitation do?
The following questions and answers are provided to the general public for informational purposes only. They are not legal documents and do not bind the Segregated Account of Ambac Assurance Corporation, the Office of the Commissioner of Insurance, or the Rehabilitator to any position or interpretation of the rehabilitation court's orders in these proceedings, now or in the future. Interested parties should review the court documents available on this site and consult their own legal counsel with any questions they may have regarding any effect this rehabilitation proceeding may have on their legal rights and obligations.
Search the FAQ for entries containing:The Plan provides for the orderly run-off and/or settlement of the liabilities allocated to the Segregated Account. If the Plan is confirmed by the Court, holders of valid policy claims will receive a combination of cash payments and 5.1% interest-bearing, unsecured notes that are scheduled to mature in year 2020. The initial cash/surplus note split will be 25% cash and 75% surplus notes. As a result, holders of valid policy claims will receive cash equal to 25% of those claims, and surplus notes with a face value equal to 75% of such claims.
Last updated on October 8, 2010 by Ambac Policyholders Administrator
