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Article: BOND INSURERS: Ambac Warns of Liquidity Shortage, Possible Bankruptcy Filing.(Underwriters & Dealers)
- Article from:
- The Bond Buyer
- Article date:
- November 11, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Patrick Mcgee
Ambac Financial Group, parent of bond insurer Ambac Assurance Corp., warned that its liquidity could dry up before the second quarter of 2011 and that it may have to file for bankruptcy protection, according to its third-quarter 10Q filing. The company said current liquidity is "currently insufficient to fund its needs beyond the near term."
Ambac is attempting to respond to the issue by developing new strategies but the situation is such that the failure to successfully execute one of the strategies "could result in it running out of liquidity by the first quarter of 2011 or potentially sooner," the company said in its quarterly ...