Btw I have no ax to grind here. I sold all my pre-$3.75 divvy stock after the positive tax news, and re-established a small position from a little higher than the current price. So I am hopeful this situation works out.
But I think some of the risks to this situation are being completely glossed over by some on this board. They have a real liquidity issue in their auction rate securities that may take many months to resolve best case. Worst case has Ambac going bankrupt and ALSC becoming a creditor behind all the holders of the billions of dollars of bonds guaranteed by Ambac.
That is pretty much the story, except I do not believe the securities ALSC holds are guaranteed by ABK since they carry a AA rating by S&P and would carry a AAA if guaranteed. I am waiting on the sidelines for the 10K since ALSC will need to write these down and probably classify them as long-term which is what ADCT and CIEN have been doing.