HAMILTON, Bermuda, July 22, 2016 /PRNewswire/ – Syncora Holdings Ltd. ("SHL" or the "Company") today announced that its wholly owned, New York financial guarantee insurance subsidiary, Syncora Guarantee Inc. ("SGI"), has reached an agreement in principle for the settlement of its sole existing claim and related litigation with Lehman Brothers Holdings Inc. and Structured Asset Securities Corporation ("Sasco"). If consummated, the terms of the settlement will resolve all claims in respect of SGI's proof of claim filed on January 13, 2010, against Lehman Brothers Holdings Inc. and Sasco in the United States Bankruptcy Court for the Southern District of New York, relating to the GreenPoint Mortgage Funding Trust 2006-HE1 transaction, in return for an allowed unsecured claim of $37 million in the Lehman bankruptcy estate. In the Notice Regarding Tenth Distribution Pursuant to The Modified Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. And Affiliated Debtors filed with the bankruptcy court on June 9, 2016, the Lehman bankruptcy estate is currently projecting cumulative payments of approximately 36 cents on the dollar to be paid on allowed unsecured claims, but that projection is subject to change. The settlement remains subject to final definitive documentation. No assurances can be made that such final definitive documentation will be entered into. If consummated, the settlement is expected to increase SHL's GAAP net income and shareholders' equity by the amount ultimately paid by the Lehman bankruptcy estate and is expected to have the same effect on SGI's statutory-basis net income and policyholders' surplus.
This settlement is separate and distinct from the U.S. Bank National Association, as Indenture Trustee v. GreenPoint Mortgage Funding, Inc. action, with respect to, among other things, alleged breaches of representations and warranties by GreenPoint, which remains pending in state court.
About Syncora Holdings Ltd.
Syncora Holdings Ltd. (OTC: SYCRF) is a Bermuda-domiciled holding company. Each of Syncora Guarantee Inc. and Syncora Capital Assurance Inc. are wholly owned subsidiaries of Syncora Holdings Ltd. For more information, please visit www.syncora.com.
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Important Information and Forward Looking Statements
This press release contains statements about future results, plans and events that may constitute "forward-looking" statements. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. These risks and uncertainties include, but are not limited to, the factors described in the Company's historical filings with the NYDFS, and in the Company's and Syncora Guarantee Inc.'s GAAP and statutory financial statements, as applicable, posted on its website at www.syncora.com. 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.
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SOURCE Syncora Holdings Ltd.