Ambac Shares Sink on Loss, Bankruptcy Warning

Ambac Financial Group (ABK) sank over 20% to 70 cents in premarket trading Tuesday after the bond insurer reported another quarterly loss and said in a regulatory filing late Monday that it's working on a prepackaged bankruptcy filing.

Ambac reported a second-quarter net loss attributable to common shareholders of $57.6 million, or 20 cents a share. That compares to a net loss of $2.37 billion, or $8.24 a share, in the same period a year earlier. The latest results included $2.78 billion in realized losses on derivatives and $2.98 billion in unrealized gains.

"Ambac is currently pursuing raising additional capital and is also pursuing a restructuring of its outstanding debt through a prepackaged bankruptcy proceeding," the company said in a quarterly regulatory filing late Monday.

This is not the first time Ambac has told shareholders it's considering some sort of bankruptcy proceedings; in the last quarter it said it might seek bankruptcy protection and could default on its debt.

Meanwhile, rival MBIA Inc. (MBI) reported a $1.3 billion, or $6.32 a share, quarterly profit.
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