AMBAC Indemnity statement on Orange County.NEW YORK--(BUSINESS WIRE)--Dec. 7, 1994--In response to the unprecedented filing for bankruptcy by Orange County, Calif., Phillip B. Lassiter, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AMBAC AMBAC American Municipal Bond Assurance Corporation AMBAC Active Mass Balance Auto-Control (Gundam anime) Indemnity Corp., a leading bond insurer made the following comments: "First and foremost all holders of AMBAC insured bonds impacted by this bankruptcy can rest assured that they will receive timely payment of principal and interest when due if there is a default by the issuer of such bonds. AMBAC has more than sufficient resources to cover any and all eventualities for bonds directly or indirectly impacted by this bankruptcy. However, at this point in time I must emphasize that it is premature to assume that the filing by Orange County will result in a default on any AMBAC insured bonds. "Although the filing represents a drastic course of action and is unprecedented for a county government, we continue to believe that Orange County has the capacity to meet its financial obligations and believe it reasonable to assume that the State of California will be supportive in resolving these issues. "In terms of direct exposure to the County, AMBAC has insured certificates of participation (leases) for essential facilities that require annual debt service payments of approximately $17 million per year. This would be our anticipated annual exposure if the County made no payments to its bondholders. AMBAC has exposure to other investors in the fund which at this time does not appear to be problematic given segregated and dedicated revenue streams backing most of the issues. "We continue to believe that with the orderly liquidation of the fund and if all investors share proportionately in the economic loss, virtually all participants will fulfill their financial obligations. Regardless of the outcome, all AMBAC policyholders can rest assured that their AMBAC bonds will be paid. "This filing further underscores the value of bond insurance as protection for events impacting bonds that very recently were viewed as high quality." AMBAC Indemnity Corp. is the principal operating subsidiary of AMBAC Inc., a New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. traded company (ABK ABK Abkuerzung (German: Abbreviation) ABK Anybody Killa (musician) ABK Ahli Bank of Kuwait ABK American Bank of Kosovo ABK Aphakic Bullous Keratopathy (ophthalmology) ). AMBAC Indemnity carries a triple-A claims-paying ability rating from each of Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. Inc., Standard & Poor's Corp. and Fitch Investors Services Fitch Investors Service A financial services company best known for the bond ratings it provides investors. Inc. CONTACT: AMBAC, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of John Cathey, 212/208-3490 |
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