Debevoise Advises Ambac on Completion of Its Segregated Account Rehabilitation and Holistic Restructuring Transaction

12 February 2018

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.

The Debevoise team was led by partner Steven J. Slutzky 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.

Debevoise & Plimpton LLP is a premier law firm with market-leading practices, a global perspective and strong New York roots. We deliver effective solutions to our clients’ most important legal challenges, applying clear commercial judgment and a distinctively collaborative approach.