NY Disapproves Syncora Payment
Bermuda’s Syncora Holdings Ltd. has announced the New York State Department of Financial Services [NYDFS] disapproved the payment of the amounts scheduled to become due today on $150,000,000 original principal amount of short-term surplus notes issued by its New York financial guarantee subsidiary, Syncora Guarantee Inc.
“There can be no assurance as to when or whether the conditions to payment of the company’s surplus notes, including NYDFS approval thereof, will be satisfied,” said a Syncora spokesman this morning [Dec. 28].” Until conditions to payment have been satisfied, Syncora Guarantee has no obligation to make payments on such surplus notes.”
Syncora also announced that all conditions to the scheduled payments due on December 28, 2011, with respect to the remaining $75,000,000 outstanding principal balance of the short-term surplus note issued by Syncora Capital Assurance Inc., a wholly owned New York financial guarantee subsidiary of Syncora Guarantee, together with interest thereon, were satisfied.
Accordingly, such payments were made to Syncora Guarantee today.
Syncora Holdings Ltd. is a Bermuda-domiciled holding company. Each of Syncora Guarantee Inc. and Syncora Capital Assurance Inc. are wholly owned subsidiaries of Syncora Holdings Ltd.
