Syncora Holdings Ltd. Announces Posting of First Quarter 2016 Interim GAAP Consolidated Financial Statements and Provides Update on Recent Events
NEW YORK, July 1, 2016 /PRNewswire/ -- Syncora Holdings Ltd. ("SHL" or the "Company") and its wholly owned subsidiaries, Syncora Guarantee Inc. ("SGI") and Syncora Capital Assurance Inc. ("SCAI"), announced today that the Company has posted on its website at www.syncora.com, its interim GAAP consolidated financial statements for the quarter ended March 31, 2016.
The Company also announced that SGI has entered into an Amended and Restated Restructuring Support Agreement (the "RSA") with the Puerto Rico Electric Power Authority ("PREPA") and certain of its creditors (the "PREPA Settlement") in connection with $197 million in principal amount of guarantees issued by SGI covering bonds issued by PREPA. These guarantees are 100% reinsured to SCAI pursuant to an affiliate reinsurance treaty. Assuming the conditions precedent to the PREPA Settlement are satisfied in line with current expectations, the Company believes that the transaction will not have a material effect on the Company's consolidated financial condition. However, under the terms of the PREPA Settlement, SCAI was required to purchase $38.5 million of PREPA bonds, and may be required to make additional bond purchases in the near to medium term. The PREPA Settlement is subject to a number of conditions precedent, the satisfaction of which are subject to significant uncertainty. No assurance can be given that these conditions precedent will be satisfied on a timely basis or at all.
In addition, the Company announced that SCAI entered into a settlement agreement with an institutional counterparty, which included, among other things, the settlement of a dispute related to its guarantee of certain interest rate swaps issued with respect to the City of Detroit. As the Company's previously established loss reserves were in line with the related settlement amount, this transaction did not have a material effect on the Company's financial condition.
Finally, in June 2016, SGI sought approval from the New York Department of Financial Services ("NYDFS") for the June 2016 semi-annual payment of interest and other outstanding amounts on both the SGI short-term and SGI long-term surplus notes. The NYDFS did not approve such payments. Separately, in June 2016, SCAI sought (and received) approval from the NYDFS for payment of interest on the SCAI long-term surplus notes.
About Syncora Holdings Ltd.
Syncora Holdings Ltd. (OTC: SYCRF) is a Bermuda-domiciled holding company. Syncora Guarantee Inc. and Syncora Capital Assurance Inc. are wholly owned subsidiaries of Syncora Holdings Ltd.
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. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. These risks and uncertainties include, but are not limited to, the factors described in the Company's historical filing with the New York Department of Financial Services, and in the Company's, Syncora Guarantee Inc.'s and Syncora Capital Assurance Inc.'s GAAP and statutory financial statements, as applicable, 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. The Company 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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