By Linda Sandler
(Updates with memorandum in third paragraph.)
Dec. 29 (Bloomberg) -- Ambac Financial Group Inc.’s $27.1 million settlement of a class-action lawsuit was approved by a U.S. judge who said the deal was reasonable and would allow the bankrupt company to complete its Chapter 11 plan.
The Police and Fire Retirement System of Detroit had challenged the bankruptcy judge’s September approval of the deal, partly because it stops other parties from suing Ambac, the bankrupt holding company for a failed bond insurer.
In a memorandum and order filed in court today, U.S. District Judge Naomi Buchwald said the bankruptcy judge was right to approve the deal after determining the settlement fell “well above the lowest point in the range of reasonableness,” warranting its approval by court measures.
“Settlements are strongly favored in the bankruptcy context, as they help clear a path for the efficient administration of the bankrupt estate,” she wrote in the memorandum.
The shareholder suits against Ambac, which filed for bankruptcy in 2010, sought to recover losses suffered because of Ambac’s exposure to the credit crisis tied to subprime mortgages. Ambac will pay $2.5 million, and its insurers will pay the remaining $24.6 million, according to Buchwald.
Creditors’ votes on Ambac’s reorganization plan must be in by Jan. 30, Ambac said this month. The company listed liabilities of $1.68 billion in its initial Chapter 11 petition.
The holding company case is In re Ambac Financial Group Inc., 10-15973, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--With assistance from Thom Weidlich and Tiffany Kary in New York. Editors: Mary Romano
To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net. To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.
Business Exchange
E-mail
Print
READER DISCUSSION
Disqus
Like
Dislike
Login
Add New Comment
Please wait…
Real-time updating is paused. (Resume)
Showing 0 comments
M Subscribe by email
S RSS
Sponsored Links
Volume Alert - OTCBB:RBCC
This Stock is Ready to Take Off! Review Charts & Signup For Alerts
www.BestMicroCapStock.com
Could OTCBB:FTTN Double?
The Most Promising Oil & Gas Play Could Make You Extremely Wealthy!
www.TopMicroCapStock.com
Could OTCBB:FTTN Double?
The Most Promising Oil & Gas Play Could Make You Extremely Wealthy!
www.TopMicroCapStock.com
Volume Alert - OTCBB:RBCC
This Stock is Ready to Take Off! Review Charts & Signup For Alerts
www.BestMicroCapStock.com
Buy a link now!
Most Popular Content
Read
E-mailed
Discussed
Slide Shows
Three Types of People to Fire Immediately
Top B-School Stories of 2011
Transocean: No Apologies Over Gulf Oil Spill
It's Always Sunny in Silicon Valley
Scandal at Murdoch's Scandal Factory
RSS Feed: Most Read Stories
Slide Show
Occupiers and Evicters
Special Report
Focus On Entrepreneurs, November 2011
Video
U.S. Technology Firms Are Seeking Israeli Startups
Slide Show
Black Swans of 2011
Special Report
Charlie Rose Talks to...
Video
Tweney on Top Technology Gadgets of 2012
Post a Job
Jobs
Product Manager - Local Business Products
Yelp | San Francisco, CA
Posted: Dec 8
Vice President of Finance and Administration
Misericordia University | Dallas, PA
Posted: Dec 5
Brand Specialist
Visionfund - Subsidiary of World Vision | Seattle, WA
Posted: Dec 28
Brand Specialist
Visionfund - Subsidiary of World Vision | Seattle, WA
Posted: Dec 28
Chief Financial Offcier
Epic | Verona, WI
Posted: Dec 28
View all jobs SimplyHired
Related topics in Business Exchange
Bank for International Settlements
Business Lawsuits
Chicago Booth School of Business
The Economy of Southeast Asia
Business of Beer
Ads by Google
Access the US Market
Fairfax County, Virginia is the gateway to the US market. See why.
www.FairfaxCountyEDA.org
Bachelor International
Business in London. Work Placements Guaranteed Job Offer. Apply Now!
www.LSBF.org.uk/Intern-Business
comdirect Fonds-Depot
mit Fonds-Prämie eröffnen. Mehr als 10.000 Fonds mit bis zu 100% Rabatt
www.comdirect.de/Fonds-Depot
Click here to find out more!
Click here to find out more!
Visit Bloomberg Businessweek's Small Business section to engage with trusted content considered Best-In-Class.
manche träume begraben wir, weil die zweifel größer sind als die vision