Financial Guarantors Object to Flawed Amended Commonwealth Plan Support Agreement - Seite 2

Failure to legally, in good faith, and inclusively negotiate a path out of bankruptcy will prolong Puerto Rico’s path to economic stability and reentry to capital markets. This will complicate the Puerto Rico government’s ability to finance public policy goals with municipal debt and will only hurt the people of Puerto Rico in the long-term. Furthermore, the Oversight Board’s brazen disregard for bondholders’ lawful priorities and liens imperils investor confidence in Puerto Rico’s credit profile and sets precedents that threaten the broader municipal finance market. It also sends a clear message to prospective investors that the rule of law is not respected in Puerto Rico, which could jeopardize further business investment and Opportunity Zone activity in Puerto Rico.

Ultimately, the undersigned Financial Guarantors representing $12.2 billion of current exposure and long-time assistance to the island, and trillions of dollars of insured municipal bond debt historically across the United States, cannot support the PSA as it is not a framework for a confirmable Plan of Adjustment.  The Financial Guarantors remain open to direct discussions with the Oversight Board and Commonwealth aimed at a reasonable, comprehensive and consensual solution, as we were able to do with COFINA. The Financial Guarantors are confident that a broad consensual deal based on transparent and accurate financial information, a revised Commonwealth Fiscal Plan, reasonable macroeconomic assumptions, and a reconciliation of cash balances that will restore Puerto Rico’s access to the capital markets and return efficiency to Government operations can be reached.  Without a confirmable plan that respects long-term creditors and supporters of Puerto Rico as well as the rule of law, the goals of PROMESA and the best results for the residents of Puerto Rico will not be achieved.

About Ambac
Ambac Financial Group, Inc. (“Ambac” or “AFG”), headquartered in New York City, is a financial services holding company whose subsidiaries include Ambac Assurance Corporation, a guarantor of public finance and structured finance obligations. Ambac’s common stock trades on the New York Stock Exchange under the symbol “AMBC”. The Amended and Restated Certificate of Incorporation of Ambac contains substantial restrictions on the ability to transfer Ambac’s common stock. Subject to limited exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), any person or group of persons shall become a holder of 5% or more of Ambac’s common stock or a holder of 5% or more of Ambac’s common stock increases its ownership interest. Ambac is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, we use our website to convey information about our businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates to the status of certain residential mortgage backed securities litigations. For more information, please go to www.ambac.com.