Merchandise 7.01. Regulation FD Disclosure.
On December 18, 2020, Ambac Assurance Company filed a movement within the litigation captioned, Ambac Assurance Company and The Segregated Account of Ambac Assurance Company v. Countrywide House Loans, Inc., Countrywide Securities Corp., Countrywide Monetary Corp. (n.ok.a. Financial institution of America House Loans) and Financial institution of America Corp. (Supreme Courtroom of the State of New York, County of New York (Case No. 651612/2010)), searching for postponement of the trial, beforehand set to start on February 22, 2021, due partly to the well being dangers for trial members presently posed by the COVID-19 pandemic. On December 23, 2020, the trial court docket granted the movement and postponed the trial, with out setting a brand new trial date, till a trial could also be safely held.
On December 4, 2020, the trial court docket in the identical case issued a call and order granting defendant Countrywide’s movement for abstract judgment with respect to Ambac Assurance’s fraud declare, leading to its dismissal. On December 17, 2020, Ambac Assurance filed a Discover of Attraction from the choice and order with the Appellate Division of the Supreme Courtroom, First Division.
Ahead-Trying Statements
On this report, statements which will represent “forward-looking statements” inside the which means of the secure harbor provisions of the Personal Securities Litigation Reform Act of 1995. Phrases comparable to “estimate,” “venture,” “plan,” “consider,” “anticipate,” “intend,” “deliberate,” “potential” and comparable expressions, or future or conditional verbs comparable to “will,” “ought to,” “would,” “may,” and “could,” or the damaging of these expressions or verbs, establish forward-looking statements. We warning readers that these statements will not be ensures of future efficiency. Ahead-looking statements will not be historic details however as a substitute signify solely our beliefs concerning future occasions, which can by their nature be inherently unsure and a few of which can be outdoors our management. These statements could relate to plans and aims with respect to the long run, amongst different issues which can change. We’re alerting you to the likelihood that our precise outcomes could differ, presumably materially, from the anticipated aims or anticipated outcomes which may be urged, expressed or implied by these forward-looking statements. Essential components that might trigger our outcomes to vary, presumably materially, from these indicated within the forward-looking statements embody, amongst others, these mentioned underneath “Threat Elements” in our most up-to-date SEC filed quarterly or annual report.
All or any of administration’s forward-looking statements right here or in different publications could change into incorrect and are primarily based on administration’s present perception or opinions. Ambac’s precise outcomes could range materially, and there are not any ensures in regards to the efficiency of Ambac’s securities. Amongst occasions, dangers, uncertainties or components that might trigger precise outcomes to vary materially are: (1) the extremely speculative nature of Ambac’s widespread inventory and volatility within the worth of Ambac’s widespread inventory; (2) uncertainty regarding the Firm’s capability to realize worth for holders of its securities, whether or not from Ambac Assurance Company (“Ambac Assurance”) and its subsidiaries or from transactions or alternatives other than Ambac Assurance and its subsidiaries, together with new enterprise initiatives; (3) modifications in Ambac Assurance’s estimated illustration and guarantee recoveries or loss reserves over time; (4) failure to get well claims paid on Puerto Rico exposures or incurrence of losses in quantities larger than anticipated; (5) hostile results on Ambac’s share worth ensuing from future choices of debt or fairness securities that rank senior to Ambac’s widespread inventory; (6) potential of rehabilitation proceedings towards Ambac Assurance; (7) dilution of present shareholder worth or hostile results on Ambac’s share worth ensuing from the issuance of extra shares of widespread inventory; (8) inadequacy of reserves established for losses and loss bills and chance that modifications in loss reserves could lead to additional volatility of earnings or monetary outcomes; (9) elevated fiscal stress skilled by issuers of public finance obligations or an elevated incidence of Chapter 9 filings or different restructuring proceedings by public finance issuers,
together with an elevated threat of loss on income bonds of distressed public finance issuers on account of latest judicial selections hostile to income bond holders; (10) the Firm’s lack of ability to understand the anticipated recoveries included in its monetary statements; (11) insufficiency or unavailability of collateral to pay secured obligations; (12) credit score threat all through the Firm’s enterprise, together with however not restricted to credit score threat associated to residential mortgage-backed securities, pupil mortgage and different asset securitizations, public finance obligations (together with obligations of the Commonwealth of Puerto Rico and its instrumentalities and companies) and exposures to reinsurers; (13) credit score dangers associated to giant single dangers, threat concentrations and correlated dangers; (14) the chance that the Firm’s threat administration insurance policies and practices don’t anticipate sure dangers and/or the magnitude of potential for loss; (15) dangers related to hostile choice because the Firm’s insured portfolio runs off; (16) hostile results on working outcomes or the Firm’s monetary place ensuing from measures taken to scale back dangers in its insured portfolio; (17) disagreements or disputes with Ambac’a insurance coverage regulators; (18) our lack of ability to mitigate or remediate losses, commute or cut back insured exposures or obtain recoveries or funding aims, or the failure of any transaction supposed to perform a number of of those aims to ship anticipated outcomes; (19) the Firm’s substantial indebtedness may adversely have an effect on its monetary situation and working flexibility; (20) the Firm could not be capable to get hold of financing or increase capital on acceptable phrases or in any respect on account of its substantial indebtedness and monetary situation; (21) the Firm could not be capable to generate the numerous amount of money wanted to service its debt and monetary obligations, and will not be capable to refinance its indebtedness; (22) restrictive covenants in agreements and devices could impair the Firm’s capability to pursue or obtain its enterprise methods; (23) lack of management rights in transactions for which we offer insurance coverage on account of a discovering that Ambac Assurance has defaulted; (24) the influence of catastrophic environmental or pure occasions together with catastrophic public well being occasions just like the COVID-19 pandemic, on vital parts of our insured portfolio; (25) hostile tax penalties or different prices ensuing from the characterization of the Firm’s surplus notes or different obligations as fairness; (26) dangers attendant to the change in composition of securities within the Firm’s funding portfolio; (27) modifications in prevailing rates of interest; (28) the anticipated discontinuance of the London Inter-Financial institution Provided Fee; (29) components which will affect the quantity of installment premiums paid to the Firm; (30) default by a number of of Ambac Assurance’s portfolio investments, insured issuers or counterparties; (31) market dangers impacting belongings within the Firm’s funding portfolio or the worth of our belongings posted as collateral in respect of rate of interest swap transactions; (32) dangers referring to determinations of quantities of impairments taken on investments; (33) the chance of litigation and regulatory inquiries or investigations, and the chance of hostile outcomes in connection therewith, which may have a cloth hostile impact on the Firm’s enterprise, operations, monetary place, profitability or money flows; (34) actions of stakeholders whose pursuits will not be aligned with broader pursuits of the Firm’s stockholders; (35) system safety dangers, knowledge safety breaches and cyber assaults; (36) modifications in accounting ideas or practices which will influence the Firm’s reported monetary outcomes; (37) the financial and regulatory influence of “Brexit”; (38) operational dangers, together with with respect to inner processes, threat and funding fashions, techniques and staff, and failures in companies or merchandise offered by third events; (39) the Firm’s monetary place which will immediate departures of key staff and will influence the Firm’s capability to draw certified executives and staff; (40) fluctuations in overseas forex change charges may adversely influence the insured portfolio within the occasion of loss reserves or declare funds denominated in a forex apart from US {dollars} and the worth of non-US greenback denominated securities in our funding portfolio; and (41) different dangers and uncertainties that haven’t been recognized presently.
Discussion about this post