Syncora Holdings Issues Statement Correcting Reports of Detroit Settlement
NEW YORK, Sept. 11, 2014 /PRNewswire/ -- Syncora Holdings Ltd. ("Syncora") today issued a statement correcting certain reports in the media concerning the City of Detroit (the "City") bankruptcy and the status of settlement discussions with, and recoveries to be received by, its wholly owned New York financial guarantee insurance subsidiaries, Syncora Guarantee Inc. and Syncora Capital Assurance Inc. (the "Companies").
The Companies and the City have reached tentative settlements of the Companies' claims in the Detroit bankruptcy proceedings, subject to certain contingencies. Resolution involves settlement of the Companies' Class 9 claims in connection with the Pension Obligation Certificates of Participation (valued at approximately 13 cents on the dollar) and a settlement of swaps-related and other litigation.
Separately, Pike Pointe Holdings LLC ("Pike Pointe"), a subsidiary of Syncora Guarantee Inc., is advancing development agreements with the City of Detroit and the City of Windsor with respect to the Detroit Windsor Tunnel and related or adjacent properties. Pike Pointe is a holding company for investment in and operation of infrastructure assets (including toll assets and parking, among others) through its American Roads and Detroit Windsor Tunnel LLC subsidiaries (both based in Detroit), which include a lease to operate the U.S. portion of the Detroit Windsor Tunnel. Under the development agreements, Pike Pointe will solidify its long-term business in Detroit by agreeing to invest in and develop assets in the City of Detroit, pending related due diligence.
About Syncora Holdings Ltd.
Syncora Holdings Ltd. (OTC: SYCRF) is a Bermuda-domiciled holding company. Each of Syncora Guarantee Inc., Syncora Capital Assurance Inc. and Pike Pointe Holdings LLC are wholly owned subsidiaries of Syncora Holdings Ltd. For more information, please visit www.syncora.com.
Investor and Media Contact:
Michael Corbally
+1 212-478-3400
[email protected]
FORWARD-LOOKING STATEMENTS
This release contains statements about future results, plans and events that may constitute "forward-looking" statements. You are cautioned that these statements are not guarantees of future results, plans or events and such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. These factors include, but are not limited to: the performance of invested assets; payment of claims on guaranteed obligations, including residential mortgage-backed securities; actions that may be required in order to meet anticipated liquidity and surplus needs; the Company's ability to maintain minimum policyholders' surplus; higher losses and adverse development of reserves on guaranteed obligations due to continued deterioration in the credit and mortgage markets; reduced availability of funds due to the purchase of certain insured bonds and the potential inability to convert those assets to cash at their carrying value; the suspension of writing all new business; uncertainty as to the fair value of credit default swap ("CDS") contracts and liabilities thereon; decision by the Company's regulators to take regulatory action such as rehabilitation or liquidation of the Company at any time; Syncora Capital Assurance Inc. being required to make mark-to-market termination payments under its CDS contracts; bankruptcy events involving counterparties to CDS contracts; the potential loss of certain control rights under certain financial guarantee insurance; non-payment of premium and make wholes owed or cancellation of policies; impact of the non-payment of dividends on Syncora's series A preference shares on the composition of Syncora's Board of Directors; uncertainty in portfolio modeling which makes it difficult to estimate potential paid claims and loss reserves; potential adverse developments at Syncora Capital Assurance Inc. and recapture of business to be ceded to Syncora Capital Assurance Inc. under the master transaction agreement between the Company and certain financial counterparties to the Company's CDS contracts (the "2009 MTA"); the financial condition of Syncora Guarantee (U.K.) Limited and action by the Prudential Regulation Authority and the Financial Conduct Authority; requirement of the Company to provide Syncora Guarantee (U.K.) Limited with sufficient funds to maintain its minimum solvency margin; challenges related to the 2009 MTA and any commutations and releases; defaults by counterparties to reinsurance arrangements; the interconnectedness of risks that affect the Company's reinsurance and insurance portfolio and financial guarantee products; termination payments related to less traditional products, including CDS contracts, possibly in excess of current resources; exposure to large refinancing risks; non-payment of premiums by policyholders; changes in accounting policies or practices or the application thereof; changes in officers or key employees; further deterioration in general economic conditions, including as a result of the financial crisis as well as inflation or deflation, interest rates, foreign currency exchange rates and other factors and the effects of disruption or economic contraction due to catastrophic events or terrorist acts; the commencement of new litigation or investigations or the outcome of current and new litigation or investigations; legislative or regulatory developments, including changes in tax laws and regulation of mortgages; losses from fraudulent conduct due to unconditional and irrevocable nature of financial guarantee insurance; problems with the transaction servicers in relation to structured finance transactions; limitations on the availability of net operating loss carry forwards; uncertainty as to federal income tax treatment of CDS contracts; liquidity risks including due to timing of claims payments and reduced availability of funds undertakings with the New York State Department of Financial Services ("NYDFS"); conflicts of interests with significant shareholders of Syncora; limitations on the transferability of the common shares of Syncora and other additional factors, risks or uncertainties described in Syncora's historical filings with the NYDFS or the Securities and Exchange Commission, including in its Annual Report on Form 10K for the fiscal year ended December 31, 2008, as amended and in Syncora's, the Company's and Syncora Capital Assurance Inc.'s financial statements posted on its website at www.syncora.com. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date they are made. Syncora does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made.
SOURCE Syncora Holdings Ltd.
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