NEW YORK, Nov. 8 (Xinhua) -- U.S. insurance company Ambac Financial filed for bankruptcy Monday after failing to reach a deal with its creditors on restructuring.
Ambac Financial filed a petition for Chapter 11 protection Monday at the U.S. Bankruptcy Court in Manhattan.
The insurer, the holding firm of Ambac Assurance Corp., has liabilities of 1.68 billion U.S. dollars as of June 30 on an unconsolidated basis.
The company seeks to reschedule payments on more than 1 billion dollars in bonds and other claims.
Senior creditors failed to agree on a plan for a quick restructuring and it couldn't raise capital as "an alternative," Ambac Financial said in a statement.
Ambac was once the second largest insurer in the United States, but sustained significant losses as a result of the subprime mortgage crisis plaguing the U.S. housing and financial sector.