−Removed: You should carefully consider the risk factors set forth in the “Risk Factors” section, Item 1A to Part I in our Annual Report on
+Added: You should carefully consider the risk factors set forth in the “Risk Factors” section, Item 1A to Part I in our Annual Report on Form 10-K for the year ended December 31, 2021, which are
| Ambac Financial Group, Inc.
−Removed: 69 2022 First Quarter FORM 10-Q |
−Removed: Form 10-K for the year ended December 31, 2021, which are hereby incorporated by reference.
+Added: 71 2022 Second Quarter FORM 10-Q |
+Added: hereby incorporated by reference.
These important factors may cause our actual results to differ materially from those indicated by our forward-looking statements, including those contained in this report.
1 unchanged sentence
There have been no material changes to the risk factors we have disclosed in the “Risk Factors” section of our aforementioned Annual Report on Form 10-K, except as noted below.
−Removed: Our inability to realize the expected recoveries included in our financial statements could adversely impact our liquidity, financial condition and results of operations and the value of our securities, including the Sitka Senior Secured Notes and Tier 2 Notes.
+Added: AAC's inability to realize the expected recoveries included in our financial statements could adversely impact our liquidity, financial condition and results of operations and the value of our securities, including the Sitka Senior Secured Notes and Tier 2 Notes.
AAC is pursuing claims in litigation with respect to certain RMBS transactions that it insured.
2 unchanged sentences
However, generally the sponsors have not honored those obligations and have vigorously defended claims brought against them.
−Removed: As of March 31, 2022, we have estimated RMBS R&W subrogation recoveries of $1,480 (net of reinsurance) included in our financial statements.
+Added: As of June 30, 2022, we have estimated RMBS R&W subrogation recoveries of $1,462 (net of reinsurance) included in our financial statements.
These estimated recoveries are based on the contractual claims brought in the aforementioned litigations and represent a probability-weighted estimate of amounts we expect to recover under various possible scenarios.
7 unchanged sentences
DLJ Mortgage Capital, Inc.
−Removed: relating to Home Equity Asset Trust 2007-1, a residential mortgage-backed securities trust ("HEAT"), to be the subject of additional arguments, decisions and appeals in certain of its RMBS
−Removed: litigations as well as in unrelated cases.
−Removed: Actions or decisions by trial or appellate courts regarding the implications of HEAT may significantly impact the manner in which AAC presents its case, AAC's ultimate recoveries, or the timing of trials or pre-trial procedures, filings or actions.
+Added: relating to Home Equity Asset Trust 2007-1, a residential mortgage-backed securities trust ("HEAT"), to be the subject of additional arguments, decisions and appeals in certain of its RMBS litigations as well as in unrelated cases.
+Added: Actions or decisions by
+Added: trial or appellate courts regarding the implications of HEAT may significantly impact the manner in which AAC presents its case, AAC's ultimate recoveries, or the timing of trials or pre-trial procedures, filings or actions.
Due to the foregoing factors, any litigation award or settlement may be for an amount less than the amount necessary (even when combined with other pledged collateral) to pay the Sitka Senior Secured Notes or the Tier 2 Notes, which could have a material adverse effect on our financial condition or results of operations.
11 unchanged sentences
However, AAC may not be successful in enforcing its claims against any successor entity.
+Added: The RMBS litigations could also be adversely affected if AAC does not have sufficient resources to actively prosecute its claims
| Ambac Financial Group, Inc.
−Removed: 70 2022 First Quarter FORM 10-Q |
−Removed: The RMBS litigations could also be adversely affected if AAC does not have sufficient resources to actively prosecute its claims or becomes subject to rehabilitation, liquidation, conservation or dissolution, or otherwise impaired by actions of OCI.
+Added: 72 2022 Second Quarter FORM 10-Q |
+Added: or becomes subject to rehabilitation, liquidation, conservation or dissolution, or otherwise impaired by actions of OCI.
Our ability to realize the estimated RMBS R&W subrogation recoveries included in our financial statements and the timing of the recoveries, if any, is subject to significant uncertainty, including the risks described above and uncertainties inherent in the assumptions used in estimating such recoveries.
−Removed: The amount of these subrogation recoveries is significant and if we were unable to recover all such amounts, our stockholders’ equity as of March 31, 2022, would decrease from $974.4 to $(501.6).
+Added: The amount of these subrogation recoveries is significant and if we were unable to recover all such amounts, our stockholders’ equity as of June 30, 2022, would decrease from $846 to $(616).
We expect to recover material amounts of claims payments through remediation measures, including the litigation described above, as well as through cash flows in the securitization structures of transactions that AAC insures.
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.