XML 37 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
Debtor in Possession Financial Information
 3 Months Ended
Mar. 31, 2013
Reorganizations [Abstract]  
Debtor in Possession Financial Information

2. DEBTOR IN POSSESSION FINANCIAL INFORMATION

Entities operating in bankruptcy and expecting to reorganize under Chapter 11 of the Bankruptcy Code are subject to the additional accounting and financial reporting guidance in ASC Topic 852 “Reorganizations”. In accordance with ASC Topic 852, following the date Ambac filed its Chapter 11 petition, we discontinued recording interest expense on debt classified as Liabilities subject to compromise, which amounted to $232,556 as of March 31, 2013. The stated contractual interest on debt classified as Liabilities subject to compromise amounted to $20,660 and $24,162 for the three months ended as of March 31, 2013 and March 31, 2012, respectively. As required by ASC Topic 852, the amount of the Liabilities subject to compromise represents our estimate of known or potential pre-petition claims to be addressed in connection with the bankruptcy. The Liabilities subject to compromise in the Consolidated Balance Sheets consists of the following:

 

     March 31,
2013		      December 31,
2012		  

Debt obligations and accrued interest payable

    $ 1,690,312       $ 1,690,312   

Accounts payable

      14,329         14,592   
  

 

 

     

 

 

  

Consolidated liabilities subject to compromise

      1,704,641         1,704,904   

Payable to non-debtor subsidiaries

      —           35   
  

 

 

     

 

 

  

Debtor’s Liabilities subject to compromise

    $ 1,704,641       $ 1,704,939   
  

 

 

     

 

 

  

 

Professional advisory fees and other costs directly associated with our reorganization are reported separately as reorganization items pursuant to ASC Topic 852. Reorganization items also include adjustments to reflect the carrying value of certain pre-petition liabilities at their allowable claim amounts. The reorganization items in the Consolidated Statements of Total Comprehensive Income for the three months ended March 31, 2013 and 2012 consisted of the following items:

 

     Three months ended
March 31, 2013		      Three months ended
March 31, 2012		  

U.S. Trustee fees

    $ 10       $ 20   

Professional fees

      2,049         2,441   
  

 

 

     

 

 

  

Total reorganization items

    $ 2,059       $ 2,461