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Debtor in Possession Financial Information
 9 Months Ended
Sep. 30, 2012
Debtor in Possession Financial Information

2. Debtor in Possession Financial Information

Liabilities Subject to Compromise

As required by ASC Topic 852, Reorganizations, the amount of the Liabilities subject to compromise represents our estimate of known or potential pre-petition and post-petition claims to be addressed in connection with the Bankruptcy Filing. Such claims are subject to future adjustments. The Liabilities subject to compromise in the Consolidated Balance Sheet consists of the following:

 

     September 30, 2012      December 31, 2011  

Debt obligations and accrued interest payable

    $ 1,690,312       $ 1,690,312   

Other

      17,096         17,109   
  

 

 

     

 

 

  

Consolidated Liabilities subject to compromise

      1,707,408         1,707,421   

Payable to non-debtor subsidiaries

      35         35   
  

 

 

     

 

 

  

Debtor’s Liabilities subject to compromise

    $ 1,707,443       $ 1,707,456   
  

 

 

     

 

 

  

Interest was no longer accrued on Ambac’s debt obligations included in Liabilities subject to compromise on the Consolidated Balance Sheets after Ambac filed for bankruptcy protection on November 8, 2010. If Ambac had continued to accrue interest on its debt obligations, contractual interest expense would have been $20,428 and $64,868 for the three and nine months ended September 30, 2012, and $26,878 and $84,099 for the three and nine months ended September 30, 2011. The lower interest expense in 2012 is due to the assumption of a maturity of certain debt obligations in 2011.

Reorganization Items, net

Professional advisory fees and other costs directly associated with our reorganization are reported separately as reorganization items pursuant to ASC Topic 852. The reorganization items in the Consolidated Statements of Total Comprehensive Income for the three and nine month periods ended September 30, 2012 and 2011, consisted of the following items:

 

     Three months ended
September 30, 2012		      Nine months  ended
September 30, 2012		  

U.S. Trustee fees

    $ 13       $ 39   

Professional fees

      1,239         4,441   
  

 

 

     

 

 

  

Total reorganization items

    $ 1,252       $ 4,480   
  

 

 

     

 

 

  

 

     Three months  ended
September 30, 2011		      Nine months  ended
September 30, 2011		  

U.S. Trustee fees

    $ 13       $ 31   

Professional fees

      8,506         25,724   

Lease settlement

      —           14,007   

Other

      —           32   
  

 

 

     

 

 

  

Total reorganization items

    $ 8,519       $ 39,794