Ambac, the bond insurer that warned in November it was rapidly running out of cash, has brought in Blackstone to advise on a restructuring strategy, according to Reuters.
The news agency, citing sources, said the bond insurer is working on a strategy to address its “liquidity issues”. Both Ambac and Blackstone declined to comment.
Blackstone, for its part, is no stranger to the bond insurance industry: it is a part-owner of FGIC (alongside PMI Group) and has acted as an adviser to ACA, one of the smaller and even more troubled companies in the sector.
Related links:
Ambac attack! – FT Alphaville
The unenviable, uncertain future of the bond insurance industry – FT Alphaville