Bloomberg – Hedge funds including King Street Capital LP and Stonehill Capital Management LP filed a motion seeking to prevent Ambac Financial Group Inc. from taking assets out of a bond-insurance unit.
The policyholders filed a motion in the circuit court of Dane County, Wisconsin, to stop Ambac Financial Group from siphoning off dividends from its Ambac Assurance unit or using net operating losses without compensating the subsidiary, according to a statement issued yesterday. The holding company has said it may file for bankruptcy.
