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.
Read Full Story

Markets

NASDAQ 6,867.36 4.88 0.07%
S&P 500 2,597.08 -1.95 -0.07%
DJIA 23,526.18 -64.65 -0.27%
NIKKEI 225 22,523.15 106.67 0.48%
HANG SENG 30,003.49 0.00 0.00%
DAX 13,015.04 -152.50 -1.16%
USD (per EUR) 1.18 0.00 0.02%
USD (per CHF) 0.98 0.00 -0.06%
JPY (per USD) 111.12 -0.19 -0.17%
GBP (per USD) 1.33 0.00 0.03%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.