New York, NY | May 28, 2009 — Syncora Holdings Ltd. ("Syncora") announced today that its wholly owned subsidiary, Syncora Guarantee Inc. ("SGI" or "Syncora Guarantee"), has completed its remediation plan sufficient to meet its minimum statutory policyholder surplus requirements and address previously announced short and medium term liquidity issues. The remediation plan included purchases of certain of SGI's guaranteed exposures, monetization of certain of its illiquid assets, receipt of a partial pre-payment of a surplus note from its wholly owned subsidiary Syncora Capital Assurance Inc. and various other loss remediation and restructuring actions.
Syncora also announced that, as required by a supplemental order issued by the New York Insurance Department (the "NYID") on June 17, 2010, SGI has provided, and the NYID has approved, SGI's plan (the "Plan") for the payment of new claims as they become due in the ordinary course of business and for the payment of claims accrued and unpaid since April 26, 2009 (the date after which SGI was ordered (the "1310 Order") by the NYID to suspend claims payments until it had eliminated its impairment to its statutory capital and returned to compliance with minimum statutory capital).
In accordance with the Plan, SGI will commence making claim payments on regularly scheduled payment dates occurring on or after July 21, 2010. Current claims will be paid in full on their regularly scheduled payment dates as they occur on or after July 21, 2010. Accrued and unpaid claims from and including April 26, 2009 to and including July 20, 2010 will be paid over a six (6) month period as follows: (i) up to twenty percent (20%) of the aggregate outstanding unpaid amount of the accrued claims for a given transaction (measured on July 21, 2010) shall be paid on the first payment date occurring on or after July 21, 2010; and (ii) up to forty percent (40%) of the aggregate outstanding unpaid amount of the accrued claims for a given transaction (measured on July 21, 2010) shall be paid on each succeeding payment date, with the complete payment of these accrued claims expected to be made on or before January 21, 2011. Information with respect to accrued claims payments will be posted from time to time on Syncora's website (www.syncora.com). Bondholders of SGI wrapped RMBS securities may also be able to obtain claims payment information from bond trustee reports.
Finally, Syncora also announced that while SGI's loss reserve analysis is still ongoing, it now expects SGI to report statutory surplus as of June 30, 2010 in line with, or in excess of, the $104.1 million reported as of March 31, 2010. Syncora notes, however, that this is a preliminary estimate and SGI's actual statutory policyholder surplus reported for the second quarter may differ.
About Syncora Holdings Ltd.
Syncora Holdings Ltd. (OTC: SYCRF) is a Bermuda-domiciled holding company.
Go Back
Go Back