Ambac Settles RMBS Litigation Against Nomura
January 03 2023 - 8:30AM
Business Wire
Ambac Financial Group (NYSE: AMBC), a financial services holding
company whose subsidiaries include Ambac Assurance Corporation
(“AAC”), today announced that on December 29, 2022, AAC entered
into a Settlement Agreement and Release (the “Settlement
Agreement”) with Nomura Credit & Capital, Inc. (“Nomura”) to
settle its RMBS litigation1 against Nomura. As a result, Nomura has
agreed to pay AAC $140 million.
This settlement materially exceeds the amount of subrogation
recovery recorded on Ambac’s 3Q 2022 consolidated GAAP financial
statements attributable to the Nomura litigation. Accordingly,
Ambac estimates that it will record a gain with respect to the
settlement of approximately $43 million. This gain will be
recognized in Ambac’s fourth quarter financial results.
Funds are expected to be received within 10 business days from
the execution date of the Settlement Agreement. AAC will use all
proceeds, plus cash on hand, to repay the entire outstanding
balance of Tier 2 Notes.
Claude LeBlanc, Ambac President and Chief Executive Officer,
stated, “Ambac is very pleased to have reached this settlement with
Nomura, which, in addition to the previously announced Bank of
America settlement, successfully brings closure to all of Ambac’s
legacy RMBS representation and warranty litigation.”
1Includes the following pending litigation: Ambac Assurance
Corporation and The Segregated Account of Ambac Assurance
Corporation v. Nomura Credit & Capital, Inc. and Nomura Holding
America Inc. (Supreme Court of the State of New York, County of New
York, Case No. 651359/2013, filed on April 15, 2013).
About Ambac
Ambac Financial Group, Inc. (“Ambac” or “AFG”) is a financial
services holding company headquartered in New York City. Ambac’s
core business is a growing specialty P&C distribution and
underwriting platform. Ambac also has a legacy financial guaranty
business in runoff. Ambac’s common stock trades on the New York
Stock Exchange under the symbol “AMBC”. Ambac is committed to
providing timely and accurate information to the investing public,
consistent with our legal and regulatory obligations. For
additional information please go to www.ambac.com.
The Amended and Restated Certificate of Incorporation of Ambac
contains substantial restrictions on the ability to transfer
Ambac’s common stock. Subject to limited exceptions, any attempted
transfer of common stock shall be prohibited and void to the extent
that, as a result of such transfer (or any series of transfers of
which such transfer is a part), any person or group of persons
shall become a holder of 5% or more of Ambac’s common stock or a
holder of 5% or more of Ambac’s common stock increases its
ownership interest.
Forward-Looking Statements
In this press release, statements that may constitute
“forward-looking statements” within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as “estimate,” “project,” “plan,” “believe,”
“anticipate,” “intend,” “planned,” “potential” and similar
expressions, or future or conditional verbs such as “will,”
“should,” “would,” “could,” and “may,” or the negative of those
expressions or verbs, identify forward-looking statements. We
caution readers that these statements are not guarantees of future
performance. Forward-looking statements are not historical facts
but instead represent only our beliefs regarding future events,
which may by their nature be inherently uncertain and some of which
may be outside our control. These statements may relate to plans
and objectives with respect to the future, among other things which
may change. We are alerting you to the possibility that our actual
results may differ, possibly materially, from the expected
objectives or anticipated results that may be suggested, expressed
or implied by these forward-looking statements. Important factors
that could cause our results to differ, possibly materially, from
those indicated in the forward-looking statements include, among
others, those discussed under “Risk Factors” in our most recent SEC
filed quarterly or annual report.
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version on businesswire.com: https://www.businesswire.com/news/home/20230103005141/en/
Investors: Charles J. Sebaski Managing Director, Investor
Relations (212) 208-3177 csebaski@ambac.com
Media: Kate Smith Director, Corporate Communications (212)
208-3452 ksmith@ambac.com
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