FAIRLESS HILLS, Pa. -- Ambac Financial Group, Inc. filed with a New York bankruptcy court a Chapter 11 Plan, which embodies a cost allocation agreement with its operating unit, Ambac Assurance Corporation.
The allocation is for costs incurred by AFG in disputes with the Internal Revenue Service. AFG proposes for more than 80% of the IRS-related costs will be allocated to AAC.
The plan settlement contemplates a July 29, 2011 deadline, by which time the ACC and the Wisconsin insurance regulator must decide on whether to accept or reject the settlement terms.
Details on the July 6 Plan and the plan settlement are available in AMBAC BANKRUPTCY NEWS, Issue No. 23, published by Bankruptcy Creditors' Service, Inc.
The 8-page newsletter contains stories with these headlines:
 AMBAC FINANCIAL FILES CHAPTER 11 PLAN OF REORGANIZATION
 DEBTOR'S OBJECTION TO IRS'S $1.64 BILLION CLAIMS
 DEBTOR'S 1ST TO 16TH OMNIBUS OBJECTIONS TO CLAIMS
 DEBTOR'S 17TH OMNIBUS OBJECTION TO CLAIMS
 DEBTOR'S APPLICATION TO EMPLOY LATHROP & CLARK AS COUNSEL
A copy of the newsletter can be purchased on-line with a major credit card at https://ecommerce.bankrupt.com/bin/ibl_re?co_name=AMBAC 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.
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