So we have now a team of 5 judge for debt mediation and we knew the PREPA-Deal is not save for MBIA and AGO. So if there is no settlement until june 28, AGO and MBIA must pay the PREPA-Debt of $9bn. This will increase the golden nuggest from PREPA earnings for other Bondholder.
Bad news for those holding out on that big payout by BofA: "The court also agreed with Countrywide that Ambac is not entitled to compensatory damages in the form of all claims payments it made or will make under the policies, regardless of whether they arise from a breach or misrepresentation"
Original text from court document shows no danger for ambac, because ambac owns 16% of $7,6bn COFINA senior bonds and is not accounted with value. So here are the points, why COFINA is specially protected and must be pait.
1. Until recently, the one Puerto Rico entity spared from this scheme was the Puerto Rico Sales Tax Financing Corporation, known by its Spanish acronym “COFINA.” COFINA was the Commonwealth’s original rescue bond. instead of simply promising to transfer money to COFINA to secure repayment of its bonds, the Legislative Assembly made a percentage of the Commonwealth’s sales-and-use tax revenues (the “SUT Revenues”) the property of COFINA; required that the SUT Revenues be deposited directly in a fund created for COFINA outside the control of the Commonwealth; and declared that, as a legal matter, the SUT Revenues would not be available for the Commonwealth’s spending needs under any circumstances.
2. LAW: The continued assault on COFINA by the Commonwealth and COFINA’s failure to defend and protect its revenue s has resulted in events of default under the COFINA bond resolution (the “COFINA Resolution,” attached hereto as Exhibit C). First, under the COFINA Resolution, COFINA covenanted to “defend, preserve and protect” the COFINA structure and the rights of COFINA’s creditors. Ex. C § 705. It has failed to do so, standing idly by as the Legislative Assembly has dismantled the COFINA structure through the Fiscal Plan Compliance Law. Second, the Commonwealth covenanted, both in the COFINA Resolution and in COFINA’s enabling legislation, not to take any action that would interfere with the rights of COFINA’s creditors. The Fiscal Plan and the Fiscal Plan Compliance Law flagrantly violate that contractual and statutory covenant.
LAW: substantially impaired Ambac’s contract rights in violation of the Contracts Clause of Article I, Section 10, Clause 1 (the “Contracts Clause”) of the United States Constitution (the “U.S. Constitution”); taken Ambac’s property without just compensation or due process of law in violation of the Takings Clause (the “Takings Clause”) of the Fifth Amendment to the U.S. Constitution and Due Process Clauses of the Fifth and Fourteenth Amendments to the U.S. Constitution (the “Due Process Clauses”); enacted or issued laws and executive orders that are expressly preempted by Section 303 of PROMESA; and transferred COFINA’s property to the Commonwealth in violation of Section 407 of PROMESA.. SOURCE: http://cb.pr/wp-content/uploads/2017/05/Ambac-1.pdf
RESULUTION: You are very bad informed by the newspaper about what is going on. Other people knew that ambac must account $1bn earning after this court ruling in SEC Form 8k only by COFINA Assets of the COMPANY AMBAC. BLACKROCK, GOLDMANSACHS, JPMORGAN, DEUTSCHE BANK.... they all have bought ambac since the last quartal report of the company. You can proof this by reading SEC reports.
This stock is a sleeping giant. And a strong buy. Why do you think does the CEO is buying week after week ambac shares?
New Information from Q1 2017 Earning Call: 1) AMBAC got 100% of all Senior Surplus Notes = Controls Itself AFG now 2) Rehabiliation within 60days 3)New business to Q3 2017 to use $3,6bn NOLs 4)Holder of own insured bonds from Puerto Rico: 12% PRIFA + 16% COFINA 4)Big cut of insured Book down to $75bn. 5)Builds Loss Reserv for Puerto Rico 2,2bn Exp. RESULT: Well prepared for the future. Palmer said ,,buy" and down from $28 to $26 rated.
New rating: MKM said $17 former $10and neutral from sell before Palmer said $25 former $10 and buy from buy
To Understand Puerto Rico bankcruptcy : Save for Puerto Rico are Money for ,,Essentinal Service". Save for Investors are Money from the revenue stream backed loans as like COFINA, Highway (HTA)... what is not needed for essentinal service. Go bonds can get a cut. So you can finde the list for Expenses Page 116 an here you can see the $813 Million PR has got for debt payments - but they can make more cuts in PR http://www.gdb-pur.com/documents/CommonwealthofPuertoRicoFinancialInfoFY201612-18-16.pdf
Debt Summary by Type of Debt can you find at Page 176 Indebtedness Payable Primarily from Commonwealth Taxe are (and those backed by revenue stream): COFINA $17,3bn, HTA $4,2bn, PRIFA $1,8bn, PRCCDA $0,4bn, MBA $0,03bn = TOTAL $23,774bn These are also insured by AMBAC + some GO Bonds (less $400 millions and only this is in the fire of AMBAC).
Andre..who are you talking to? Just wondering. ..
OK, Big fight now in Puerto Rico. 1) Puerto Rico 2016 Income: $17,78 bn Expenses: $20,87 bn 2) Debtservice 2016 Principal: $1,66 bn Interest and others: $2,32bn ======================= Must Change the Deficit of total: $ 3,09 bn and now we take a look of how you can do this with a 50% of account positions of 3) Health 2016 $2,985 50% cut = $1,4935 and Public housing and welfare $3,51 bn 50% cut = $1,755 bn ============================= total $3,2485 bn
Much enough to make all payments, but these cuts can only be made under Titel III if the Oversight Board agreed or an other way is that puerto rico beach-property is for sale for total $35bn.
In my kind of view, Puerto Rico has and will sell the beach-property of it´s island and got enaugh cash for his 10 year fiscal plan.
Showdown in Puerto Rico 1 May deadline. After this deadline Puerto Rico can use Titel III also to restructure is $48 billion Pension-Debt. At this point $48 billions can change from Pensions to Bondholders, but at the Bondholders Side are $53 billion already at payment-defaults. $35 billion of the total $72 billion Debt got priority payments. So what the goverment is really doing, is to use pension-payments for bondholders. The can do this under Ps3 (Privit Public Partnership) as privitization or by using Titel III. THE MOST People does not understand this.
http://thesubwaytrader.com/?s=AMBC has an alert for $AMBC. Did anyone happen to see it as well? Looking for some good positive information from the company! Even the boldest zebra fear the hungry lion. Investing making money.
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