LONG ISLAND, N.Y., Aug. 29, 2016 /PRNewswire/ -- On August 26th, 2016, Shareholder Activist Joseph Pirinea submitted to Ambac Financial Group, Inc. a Shareholder Proposal to hire an Investment Banking Firm to review Strategic Alternatives to enhance Shareholder value. He has notified the Company of his intention to introduce the Shareholder Proposal for consideration and action by the Company Shareholders at the Annual Meeting; or at a Special Shareholder Meeting if sooner.
The Stockholder Proposal, for which the Company Board and the Company accept NO responsibility, is set forth below verbatim.
Whereas, the company is not an operating going concern.
Whereas, the company has substantial valuable tax loss carry forwards and tax credits.
Whereas, the tax losses can be jeopardized under certain circumstances.
Whereas, the company's book of business is profitable and in a runoff position for a substantial number of years forward. Ambac Assurance's profitability, plus gains on its portfolio will continue to reduce tax loss carryforwards and tax credits.
Whereas, the company stands to positively resolve substantial litigation in the near term. The resolution of which should result in the utilization of a substantial amount, if not all tax loss carryforwards and credits.
Whereas, the company shares are thinly traded.
Whereas, the company's shares trade at a substantial discount to book value and adjusted book value.
RESOLVED: Shareholders request the Board of Directors hire an Investment Banking Firm to review strategic alternatives to enhance shareholder value. The review should include but not be limited to: maximizing tax loss utilization, debt management and the continued use of excess cash flow to buyback Ambac Guaranteed Securities, the potential sale of Ambac Assurance and other Subsidiaries, merger opportunities, stock and or stock warrant buybacks, and paying substantial liquidating dividends to Ambac shareholders.
SOURCE Joseph Pirinea