Syncora Holdings Ltd. Comments on Status of Jefferson County Alabama
05 August 2008 - 8:20AM
PR Newswire (US)
Subsidiary Syncora Guarantee Inc. Makes $35 Million Claim Payment
HAMILTON, Bermuda, Aug. 4 /PRNewswire-FirstCall/ -- Syncora
Holdings Ltd. (formerly known as Security Capital Assurance Ltd)
(NYSE:SCA) ("Syncora Holdings" or the "Company") commented today on
the ongoing financial crisis in Jefferson County, Alabama (the
"County"). Today, Syncora Guarantee Inc. (formerly known as XL
Capital Assurance Inc.), Syncora Holdings' primary financial
guarantee insurance subsidiary, has made a $35 million claim
payment as part of an agreement entered into with the County,
pursuant to the terms of the insurance policies it provides for the
benefit of the holders of Jefferson County's sewer warrants.
"Syncora Guarantee remains committed to honoring the terms of the
financial guarantee it provides to Jefferson County's bondholders,"
said Edward Hubbard, Executive Vice President, Syncora Holdings
Ltd., and President of Syncora Guarantee Inc. "The payment we made
today supports the efforts to resolve the County's current crisis
in a responsible manner." In conjunction with the payment, the
County and Syncora Guarantee Inc. entered into an agreement whereby
Syncora Guarantee Inc. will refrain until November 17, 2008 from
enforcing its rights to receive immediate reimbursement from the
County for this claim payment, as well as its prior $10.6 million
payment made on June 3, 2008, conditioned upon the County's
completion of certain steps related to a refunding of its existing
sewer revenue debt. The forbearance period could be shortened if
the County does not complete such steps. "The proposal presented to
the County by Citigroup Global Markets represents a significant
step in the right direction, if the County proceeds with its
implementation. We expect the County to work closely with its
financial advisors and creditors and make progress in the months
ahead," commented Hubbard. As of June 30, 2008, the Company's
exposure to Jefferson County was $809 million, net of reinsurance.
Syncora Guarantee Inc. has not established any loss reserves at
this time in connection with Jefferson County. There is no
assurance that the County will successfully resolve its current
situation, or that Syncora Guarantee Inc. will not have to make
additional claims payments or incur losses in the future related to
its Jefferson County Sewer exposure. About Syncora Guarantee Inc.
Syncora Guarantee Inc. is a New York-based operating subsidiary of
Syncora Holdings Ltd., a Bermuda-domiciled holding company whose
common shares are listed on the New York Stock Exchange (NYSE:SCA).
Effective August 4, 2008, XL Capital Assurance Inc. changed its
name to Syncora Guarantee Inc. For more information please visit
http://www.syncoraguarantee.com/ . About Syncora Holdings Ltd
Syncora Holdings Ltd. is a Bermuda-domiciled holding company whose
common shares are listed on the New York Stock Exchange (NYSE:SCA).
Effective August 4, 2008, Security Capital Assurance Ltd changed
its name to Syncora Holdings Ltd. For more information please visit
http://www.syncora.com/ . Contact: Investors Frank Constantinople
+1 441-279-7450 Media Michael Gormley +1 441-279-7450 Michele
Loguidice +1 212-333-3810 FORWARD-LOOKING STATEMENTS This release
contains statements about future results, plans and events that may
constitute "forward-looking" statements within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. You are cautioned that these statements are not
guarantees of future results, plans or events and such statements
involve risks and uncertainties that may cause actual results to
differ materially from those set forth in these statements.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the Company's control.
These factors include, but are not limited to: the outcome of the
efforts to refund Jefferson County Alabama's outstanding sewer
system debt; the outcome of SCA's negotiations with third parties
concerning the restructuring of SCA; the closing of the
transactions contemplated by the Master Transaction Agreement,
Merrill Agreement and other related agreements; the decision by the
New York Insurance Department and the Bermuda Monetary Authority or
other regulators to take regulatory action with respect to SCA's
operating subsidiaries at any time; recent and future rating agency
statements and ratings actions; the outcome of our negotiations
with the Financial Counterparties concerning the commutation,
termination, amendment or otherwise restructuring of their credit
default swap contracts; the Company's ability to successfully
implement its strategic plan; higher risk of loss in connection
with obligations guaranteed by the Company due to recent
deterioration in the credit markets stemming from the poor
performance of subprime residential mortgage loans; the suspension
of writing substantially all new business and the Company's ability
to continue to operate its business in its historic form;
developments in the world's financial and capital markets that
adversely affect the performance of the Company's investments and
its access to such markets; the performance of invested assets,
losses on credit derivatives or changes in the fair value of credit
derivatives; the availability of capital and liquidity; the timing
of claims payments and the receipt of reinsurance recoverables;
greater frequency or severity of claims and loss activity including
in excess of the Company's loss reserves; changes in the Company's
reinsurance agreements with certain of its subsidiaries; the impact
of provisions in business arrangements and agreements triggered by
the ratings downgrades; the impact of other triggers in business
arrangements including credit default swap contracts; changes in
regulation, tax laws, legislation or accounting policies or
practices; changes in officers; general economic conditions;
changes in the availability, cost or quality of reinsurance or
retrocessions; possible downgrade of the Company's reinsurers;
possible default by the counterparties to the Company's reinsurance
arrangements; the Company's ability to compete; changes that may
occur in Company operations and ownership as the Company matures;
and other additional factors, risks or uncertainties described in
Company filings with the Securities and Exchange Commission,
including in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2007, and also disclosed from time
to time in subsequent reports on Form 10-Q and Form 8-K. Readers
are cautioned not to place undue reliance on forward-looking
statements which speak only as of the date they are made. The
Company does not undertake to update forward-looking statements to
reflect the impact of circumstances or events that arise after the
date the forward-looking statements are made. DATASOURCE: Syncora
Holdings Ltd. CONTACT: Investors, Frank Constantinople,
+1-441-279-7450, , or Media, Michael Gormley, +1-441-279-7450, ,
both of Syncora Holdings; or Michele Loguidice, +1-212-333-3810, ,
of The Brunswick Group, for Syncora Holdings Web site:
http://www.syncora.com/ http://www.syncoraguarantee.com/
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