Company is operating in ordinary course to complete a comprehensive restructuring
Syncora Guarantee, a wholly owned subsidiary of Bermuda-based Syncora Holdings, has announced that pursuant to the New York State Insurance Department’s order it has suspended payment of all claims and is operating only in the ordinary course and as necessary to complete a comprehensive restructuring.
Syncora Guarantee said that its board of directors will continue to monitor the situation on a daily basis and, in the absence of a restructuring, may, in the exercise of its fiduciary duties, request the New York State Insurance Department (NYID) to seek court appointment of a rehabilitator or liquidator of Syncora Guarantee.
On April 10, 2009, the NYID issued an order to Syncora Guarantee pursuant to section 1310 of the New York Insurance Law that requires Syncora Guarantee to suspend paying any and all claims as of April 26, 2009 until such time as Syncora Guarantee has restored its surplus to policyholders to the minimum amount required by New York State Insurance Law. Syncora has not restored its surplus to policyholders to this minimum amount and is therefore prohibited from paying all claims.
There can be no assurance that the NYID, or other regulators, will not take regulatory action at any time with respect to Syncora Guarantee.