Wisconsin Insurance Commissioner Sean Dilweg Takes Action to Protect Ambac Assurance Corporation Policyholders
MADISON, Wisc., Nov. 8, 2010 /PRNewswire-USNewswire/ -- The Wisconsin Office of the Commissioner of Insurance (OCI) today took action to protect policyholders and creditors of the Segregated Account of Ambac Assurance Corporation (Segregated Account).
OCI filed a Motion for Temporary Supplemental Injunctive Relief in the Dane County Circuit Court in Wisconsin. Commissioner Sean Dilweg said that immediate action by the Court was necessary to protect policyholders and other claimants from potentially significant reductions in the available claims-paying resources for Ambac Assurance Corporation (AAC) and the Segregated Account.
The Court today granted an order, supplementing an existing injunction granted by the Court on March 24, 2010. The order is limited in nature and addresses the exposures related to newly allocated liabilities.
The Segregated Account was established on March 24, 2010, to segregate certain liabilities of AAC that presented serious financial hazards to AAC and all of its policyholders.
AAC is domiciled in Wisconsin and is regulated by the OCI. AAC's parent company, Ambac Financial Group Inc. (AFGI), headquartered in New York, is not regulated by the OCI. AFGI filed for bankruptcy today under Chapter 11 of the United States Bankruptcy Code.
A Plan of Rehabilitation was filed with the Court on Oct. 8, 2010. Before it can become effective, the Plan must be confirmed by the Honorable William D. Johnston in the Wisconsin Circuit Court for Dane County. A hearing on the Plan is scheduled to commence on Monday, Nov. 15, 2010.
Information regarding the content, schedule, and legal filings related to the Plan are available on www.ambacpolicyholders.com.
Please direct additional queries as follows:
Policyholders:
www.ambacpolicyholders.com/ask-a-question
877-301-2046 (from within the U.S.)
212-660-6373 (from outside the U.S.)
SOURCE The Wisconsin Office of the Commissioner of Insurance
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