Ambac Financial Group’s restructuring transaction

Debevoise & Plimpton LLP advised Ambac Financial Group, Inc. on its holistic restructuring transaction, including the successful conclusion of the rehabilitation of the Segregated Account of Ambac Assurance Corporation.

Debevoise also represented the company in connection with negotiating a support agreement for the restructuring, including the terms of the exchange offers and new notes, with more than 50% of holders of Ambac Assurance Corporation’s surplus notes and more than 34% of holders of other obligations of the Segregated Account.

The transaction included three exchange offers for existing surplus notes, the issuance of $2.2 billion of senior secured notes secured by the first $1.4 billion of recoveries on specified litigation and insured by Ambac Assurance Corporation and the issuance of $240 million of notes secured by such litigation recoveries in excess of $1.6 billion.

Ambac Financial Group, Inc., a financial services holding company, provides financial guarantees and other financial services to clients in both the public and private sectors worldwide. The company, led by David Trick, Stephen Michael Ksenak, Robert B. Eisman and David Barranco, is based in New York.

The Debevoise team was led by partner Steven J. Slutzky (Picture) and included partners Kenneth J. Berman, Mark P. Goodman, Scott Selinger and My Chi To; counsel Gregory T. Larkin; and associates Samantha Berkovits, Eric T. Juergens, Brent H. Nesbitt, Dan Pyon, Nicholas C.H. Roper and Daniel E. Stroik.

 

Involved fees earner: Steven Slutzky – Debevoise & Plimpton; Samantha Berkovits – Debevoise & Plimpton; Eric Juergens – Debevoise & Plimpton; Brent Nesbitt – Debevoise & Plimpton; Kenneth Berman – Debevoise & Plimpton; Scott Selinger – Debevoise & Plimpton; Gregory Larkin – Debevoise & Plimpton; Mark Goodman – Debevoise & Plimpton; My Chi To – Debevoise & Plimpton; Dan Pyon – Debevoise & Plimpton; Daniel Stroik – Debevoise & Plimpton;

Law Firms: Debevoise & Plimpton;

Clients: Ambac Financial Group, Inc.;