Ambac Financial says Detroit liabilities are obligations of general account

theflyonthewall.com

Ambac believes that the proposal put forth by the City of Detroit's state-appointed emergency manager, as well as the failure on the part of the State of Michigan to protect the status of general obligation bonds, is harmful to Detroit and the interests of taxpayers in Michigan. Ambac has hired Harrison J. Goldin of Goldin Associates to help advise Ambac on Detroit. Additionally, in response to investor inquiries on the matter, Ambac confirms that the liabilities associated with its Detroit insured exposure are obligations of Ambac's general account. Ambac honors general account claims with full, timely payments in accordance with the terms of such policies. Ambac's current insured exposure is Detroit limited tax GO $92.7M net par; and Detroit unlimited tax GO $77.6M net par.

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