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URL:  http://boards.fool.com/ambac-595-debenture-maturity-2282103-30443832.aspx

Subject:  AMBAC 5.95% Debenture Maturity 2/28/2103 Date:  12/20/2012  12:31 PM
Author:  bluepost22 Number:  34563 of 35367

This asset is sitting on a family member's Vanguard account and they are asking for advice. The line item is:

"DEB 5.95 PFD callable 2/28/08 @ 25.00 MTY 2/23/2103".

A value of $8.00 is shown on the hardcopy. Cost was about $14.00.

A Vanguard rep said they can be sold and have traded as high as $10.00. He had no idea what they would fetch on the market today.

AMBAC seems to be emerging from Chapter 11. They had a good Q3 and have approval from the bankruptcy judge. However, their bankruptcy proposal contains a significant haircut for creditors:

"Its restructuring plan allows for recoveries of between 11.4 and 17.6 cents on the dollar for holders of $1.25 billion in senior notes, and between 8.5 and 13.2 cents on the dollar for general unsecured claimholders, according to court papers.

Those groups, along with holders of $444.2 million in subordinated notes, could also stand to receive stock and warrants."

http://www.reuters.com/article/2012/03/14/ambac-confirmation...

How could these notes have sold for more than 17 cents on the dollar? Would you try to sell now if you can get $8 or just wait?

Other news sources have indicated the possibility of getting equity in addition to the partial recovery for creditors.

Thanks for any ideas or pointers.
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