Ambac’s board has refused to make an interest payment on the company’s debt signaling that the company may be about to go bankrupt, according to to a release from the company.
Ambac is trading down 55% in the pre-market on the news.
The company has long been a potential default risk, and was, in fact, the financial industry’s most likely to default company in May.
There was some recent positivity around the company based on the belief it would make money from its bond insurance positions related to the mortgage putback crisis.
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