Ambac Financial Group Inc. said it intends to book for Chapter 11 defalcation afore the end of the year if it cannot ability an acceding with debt holders.

In a filing with the U.S. Balance and Exchange Commission, Ambac said it chose not to accomplish a appointed absorption acquittal on chief addendum due in 2023, which could acquiesce its debtors to advance the ability of the addendum if a acquittal is not fabricated aural 30 days.

“To date, the aggregation has been clumsy to accession added basic as an another to gluttonous defalcation protection,” Ambac said in the filing.

The aggregation said it has been aggravating to accommodate with debt holders to restructure its debt beneath a pre-packaged defalcation agreement, but there “can be no affirmation that any audible acceding will be reached.”

For the aboriginal six months of 2010, net losses for Ambac stood at $748 million. Results were afflicted by barter settlements on acclaim absence obligations of asset-backed balance and affirmation payments on residential mortgage-backed balance and advance losses accompanying to securities.

Ambac said it either affairs to pay the absorption on the notes, try to ability an acceding with debt holders for a pre-packaged plan of reorganization, or book for Chapter 11. If an acceding is successful, Ambac said in the filing that it affairs to book for defalcation with a accompanying pre-packaged plan.

In October regulators in Wisconsin appear a rehabilitation plan to accord claimants banknote and notes.

The New York-based agreement insurer Ambac Financial Group said the accessory placed in rehabilitation, Ambac Affirmation Corp., holds behavior accretion about $57.6 billion.

Recently, Ambac sued Coffer of America over the lending practices of Countrywide that the coffer acquired in 2007. The insurer accused the mortgage lending aggregation of declining to chase its own guidelines and acceding loans to individuals who were clumsy to pay. The convenance resulted in $1.95 billion in accommodation defaults, and the insurer fabricated added than $466 actor in claims payments.


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