Ambac settles with Detroit over LTGO bonds

|About: Ambac Financial (AMBC)|By:, SA News Editor

The LTGO - limited tax general obligation - bond settlement is comprised of new LTGO notes equivalent to 34% of the LTGO allowed claim and a 20% share of notes remaining in a litigation reserve related to Detroit's pension bond litigation.

Ambac (AMBC) expects to continue to pay claims of scheduled principal and interest on the bonds insured by Ambac Assurance.