Ambac Says IRS $1.6BB Tax Refund Claims Have No Merit

FAIRLESS HILLS, Pa. -- Ambac Financial Group, Inc. has filed a formal objection in the bankruptcy court, asserting that the $1.6 billion in aggregate claims filed by the Internal Revenue Service are duplicative and are improper.  The claims are for tax refunds Ambac received from 2008 to 2010.

The Company's detailed arguments on entitlement to the tax refunds and other Ambac stories, including the departure of some top executives from the Company, are available in AMBAC BANKRUPTCY NEWS, Issue No. 21, published by Bankruptcy Creditors' Service, Inc.

The 9-page newsletter contains stories with these headlines:

[00183] DAVID WALLIS RESIGNS AS AFG CEO, DIANA ADAMS TO TAKE OVER
[00184] DEBTOR'S OBJECTION TO IRS'S $1.64 BILLION CLAIMS
[00185] AFG AGREES TO LIFT STAY TO ALLOW $27.1-MIL. SETTLEMENT
[00186] DEBTOR'S 1ST TO 16TH OMNIBUS OBJECTIONS TO CLAIMS
[00187] OCI TAPS R. PETERSON TO MANAGE AAC'S SEGREGATED ACCOUNT


A copy of the newsletter can be purchased on-line with a major credit card at <a href="https://ecommerce.bankrupt.com/bin/ibl_re?co_name=AMBAC">https://ecommerce.bankrupt.com/bin/ibl_re?co_name=AMBAC</a> for $45. Copies of all back issues are also available for purchase at BCSI's on-line newsstand.

AMBAC BANKRUPTCY NEWS tracks the restructuring of Ambac Financial Group Inc.

How to Subscribe to AMBAC BANKRUPTCY NEWS

AMBAC BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail.  New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases.  The subscription rate is $45 per issue.  Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax.  Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions.  Subscriptions may be canceled at any time without further obligation.

To continue receiving AMBAC BANKRUPTCY NEWS, please complete and submit the subscription form at <a href="https://ecommerce.bankrupt.com/bin/ibl_re?subco_name=AMBAC">https://ecommerce.bankrupt.com/bin/ibl_re?subco_name=AMBAC</a>