<SEC-DOCUMENT>0000902664-16-006555.txt : 20160328
<SEC-HEADER>0000902664-16-006555.hdr.sgml : 20160328
<ACCEPTANCE-DATETIME>20160328172448
ACCESSION NUMBER:		0000902664-16-006555
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160328
DATE AS OF CHANGE:		20160328
EFFECTIVENESS DATE:		20160328

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMBAC FINANCIAL GROUP INC
		CENTRAL INDEX KEY:			0000874501
		STANDARD INDUSTRIAL CLASSIFICATION:	SURETY INSURANCE [6351]
		IRS NUMBER:				133621676
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10777
		FILM NUMBER:		161533061

	BUSINESS ADDRESS:	
		STREET 1:		ONE STATE ST PLZ
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10004
		BUSINESS PHONE:		2126680340

	MAIL ADDRESS:	
		STREET 1:		ONE STATE ST PLZ
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10004

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMBAC INC /DE/
		DATE OF NAME CHANGE:	19930328

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CANYON CAPITAL ADVISORS LLC
		CENTRAL INDEX KEY:			0001074034
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		2000 AVENUE OF THE STARS, 11TH FLOOR
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90067
		BUSINESS PHONE:		3102721000

	MAIL ADDRESS:	
		STREET 1:		2000 AVENUE OF THE STARS, 11TH FLOOR
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90067
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>p16-0988dfan14a.htm
<DESCRIPTION>AMBAC FINANCIAL GROUP, INC.
<TEXT>
<HTML>
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<TITLE></TITLE>
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">SCHEDULE 14A</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">Proxy Statement Pursuant to Section 14(a)</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">of the Securities Exchange Act of 1934 (Amendment
No. __)</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Filed by the Registrant [ ]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Filed by a Party other than the Registrant
[x]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Check the appropriate box:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="width: 93%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">Preliminary Proxy Statement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">Definitive Proxy Statement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">Definitive Additional Materials</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">[x]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">Soliciting Material Under Rule 14a-12</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Ambac Financial Group, Inc.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Name of Registrant as Specified In Its Charter)</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Canyon Capital Advisors LLC</B><BR>
<B>The Canyon Value Realization Master Fund, L.P.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Mitchell R. Julis</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Joshua S. Friedman</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Frederick Arnold</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>John Brecker</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Eugene Davis</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Name of Person(s) Filing Proxy Statement, if
other than the Registrant)</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/85% Times New Roman, Times, Serif; margin: 0; text-align: justify">Payment of Filing Fee (check the appropriate
box):</P>

<P STYLE="font: 11pt/85% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">[X]</FONT></TD>
    <TD STYLE="width: 93%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">No fee required.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Fee computed on table below per Exchange Act Rule 14a-6(i)(4) and 0-11.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/85% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">1)</FONT></TD>
    <TD STYLE="width: 84%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Title of each class of securities to which transaction applies:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">2)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Aggregate number of securities to which transaction applies:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">3)</FONT></TD>
    <TD STYLE="width: 84%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">Per unit price or other underlying value of transaction computed pursuant to Exchange Act</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 84%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">4)</FONT></TD>
    <TD STYLE="width: 84%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Proposed maximum aggregate value of transaction:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">5)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Total fee paid:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">[&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="width: 93%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Fee paid previously with preliminary materials.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">[ &nbsp;]</FONT></TD>
    <TD STYLE="width: 93%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt">filing for which the offsetting fee was paid previously.&nbsp;&nbsp;Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">1)</FONT></TD>
    <TD STYLE="width: 84%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Amount Previously Paid:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">2)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Form, Schedule or Registration Statement No.:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">3)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 11pt; line-height: 85%">Filing Party:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
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<P STYLE="font: 10.5pt/107% Arial, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center; color: #373737"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt; text-align: center"><B>Canyon Capital Discloses Significant
Concerns, Including from Current and Former Ambac Employees, Regarding the Conduct, Integrity and Veracity of Nader Tavakoli</B></P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt">LOS ANGELES, March 28, 2016 --&nbsp;Canyon Capital Advisors
LLC (&quot;Canyon Capital&quot;), a leading alternative asset manager serving institutional clients worldwide, and manager of funds
and accounts that own almost 5% of the outstanding shares of Ambac Financial Group, Inc. (Nasdaq: AMBC) (&quot;Ambac&quot; or the
&quot;Company&quot;), today sent a letter to the Board of Directors of Ambac (&quot;Ambac's Board&quot;) outlining major concerns,
including those from multiple employees (current and former) of Ambac, about the conduct, integrity and veracity of the Company&rsquo;s
President and Chief Executive Officer, Nader Tavakoli.</P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt">The employees raised concerns that Mr. Tavakoli impeded
Ambac's policy claim buyback program; misrepresented his ability to lead the Company out of rehabilitation proceedings; incurred
excessive and personal expenses paid for by the Company; and has been paid compensation disproportionately borne by Ambac. &nbsp;Canyon
Capital also raised concerns about Mr. Tavakoli's integrity and veracity in light of Ambac's initial denial&mdash;subsequently
withdrawn&mdash;that a stockholder who had expressed support for Mr. Tavakoli on an earnings call had been CEO of a company in
which a fund previously managed by Mr. Tavakoli was invested.</P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt">Canyon Capital believes these concerns reinforce those
it previously expressed in seeking to review Ambac's books and records relating to Mr. Tavakoli's compensation and appointment
as Ambac's permanent President and CEO, pursuant to Delaware Code Section 220.&nbsp; Other than providing a stockholder list, to
date Ambac has refused to produce any of the materials requested.</P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt">In light of these concerns, Canyon Capital has also
requested that Ambac's Board disclose its plan, if any, to deploy the capital being held to pay policyholders and explain its rationale
for believing any such plan will maximize value for stockholders. Canyon Capital has requested as well that Ambac&rsquo;s Board
review all of Mr. Tavakoli's expenses paid directly or reimbursed by the Company to determine whether it was appropriate to pay
or reimburse them, and whether cost sharing agreements between Ambac and Ambac Assurance Corporation have been followed.</P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt">The full text of Canyon Capital's letter follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 3.45pt 0 0; text-align: justify"></P>

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<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 3.45pt 0 0; text-align: justify">March<FONT STYLE="letter-spacing: 0.7pt">
</FONT>28,<FONT STYLE="letter-spacing: -0.65pt"> </FONT>2016</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 3.45pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/13.7pt Calibri, Helvetica, Sans-Serif; margin: 0 329pt 0 0; text-indent: 0.2pt">The<FONT STYLE="letter-spacing: -0.3pt">
</FONT>Board<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: -0.7pt"> </FONT>Directors</P>

<P STYLE="font: 11pt/13.7pt Calibri, Helvetica, Sans-Serif; margin: 0 4.5in 0 0; text-indent: 0.2pt">Ambac<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Financial<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Group, In<FONT STYLE="letter-spacing: -0.35pt">c.</FONT></P>

<P STYLE="font: 11pt/13.7pt Calibri, Helvetica, Sans-Serif; margin: 0 329pt 0 0; text-indent: 0.2pt">One<FONT STYLE="letter-spacing: 0.15pt">
</FONT>State<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Street<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Plaza</P>

<P STYLE="font: 11pt/13.55pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: -0.5pt">New<FONT STYLE="letter-spacing: 0.4pt">
</FONT>York,<FONT STYLE="letter-spacing: -0.3pt"> </FONT>NY<FONT STYLE="letter-spacing: 1.65pt"> </FONT>10004</P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5.05pt"></TD><TD STYLE="width: 35.45pt">Re:</TD><TD STYLE="padding-right: 41.05pt"><U>Demand to Inspect Books and Records Pursuant to Section 220 of the General Corporation Law
of the State of Delaware (&ldquo;Section 220&rdquo;)</U></TD></TR></TABLE>

<P STYLE="font: 11pt/200% Calibri, Helvetica, Sans-Serif; margin: 0 365.2pt 0 5.55pt; text-indent: -0.25pt">&nbsp;</P>

<P STYLE="font: 11pt/200% Calibri, Helvetica, Sans-Serif; margin: 0 365.2pt 0 5.55pt; text-indent: -0.25pt">Gentlemen:</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">As
you know, Canyon Capital Advisors LLC (<B>&ldquo;Canyon Capital&rdquo;)</B> is the investment advisor to various affiliated funds
and accounts that beneficially own over 2.2 million shares, or almost 5% of the outstanding common stock of Ambac Financial Group,
Inc. (<B>&ldquo;Ambac&rdquo;</B>). One such fund is The Canyon Value Realization Master Fund, L.P. (<B>&ldquo;CVRF,&rdquo;</B>
and with Canyon Capital, <B>&ldquo;Canyon&rdquo;</B>). On March 7, 2016, Canyon sent an amended and supplemented demand pursuant
to Section 220 of the Delaware Code for access to books and records of Ambac and its subsidiary Ambac Assurance Corporation (<B>&ldquo;Ambac
Assurance,&rdquo;</B> and together with Ambac, the <B>&ldquo;Company&rdquo;</B>), with respect to the process by which Ambac&rsquo;s
President and Chief Executive Officer, Nader Tavakoli, was appointed and compensated (the <B>&ldquo;March 7 Demand&rdquo;</B>),
which Ambac refused by letter from its counsel dated March 14, 2016.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">Since
the March 7 Demand, Canyon has been contacted by multiple employees (current and former) of Ambac expressing concerns about the
Company&rsquo;s management similar to those set forth in the March 7 Demand. Each has independently questioned Mr. Tavakoli&rsquo;s
basic understanding of the industry, his competence to serve as its Chief Executive Officer, and the integrity with which he has
conducted himself in that position.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt"><B>Concerns
regarding whether Mr. Tavakoli Impeded Ambac&rsquo;s Policy Claim Buyback Program</B></P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">Current
and former employees of Ambac have informed Canyon that Mr. Tavakoli stood in the way of the Company&rsquo;s policy claim buybacks,
including those pertaining to Local Insight Media bonds and student loan bonds. Mr. Tavakoli now publicly claims that he favors
such buyback programs. However, we understand that his actions behind-the-scenes interfered with the work of Ambac employees in
implementing the policy claim buyback strategy and caused the Company to lose pricing advantage, thus harming stockholders.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 5.75pt 12pt 5.05pt; text-align: justify; text-indent: 0.7pt"><B>Concerns
regarding Mr. Tavakoli's Representations as to his Ability to Lead the Company out of Rehabilitation Proceedings</B></P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 5.75pt 12pt 5.05pt; text-align: justify; text-indent: 0.7pt">According
to these same sources, Mr. Tavakoli also misrepresented his ability to lead the Company out of the Ambac Assurance Segregated Account
rehabilitation proceedings. As you know and we previously have explained, despite stating publicly that the Company is focused
on the successful rehabilitation of the Segregated Account, Mr. Tavakoli has not articulated a viable plan for settling the policy
obligations&mdash;an important prerequisite to concluding the rehabilitation proceedings. These claims are accruing interest at
a rate of 5.1%, more than we believe Ambac is able to earn on the assets being withheld to pay them, permanently impairing equity
and reallocating more and more value from stockholders to policyholders the longer they remain outstanding. Given Mr. Tavakoli&rsquo;s
conflicting words and actions regarding Ambac&rsquo;s strategy for creating stockholder value, we ask that the Board of Directors
of Ambac (the &quot;Ambac Board&quot;) publicly explain its plan, if any, to deploy the capital being held to pay policyholders
and explain its rationale for believing that doing so will maximize value for stockholders.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 5.75pt 12pt 5.05pt; text-align: justify; text-indent: 0.7pt"><B></B></P>

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<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 5.75pt 12pt 5.05pt; text-align: justify; text-indent: 0.7pt"><B>Concerns
regarding Mr. Tavakoli's Expenses and the Allocation of his Compensation</B></P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">Former
and current Ambac personnel also expressed concern that Mr. Tavakoli&rsquo;s cash compensation is being unduly borne by Ambac.
Specifically, we were informed by those sources that Mr. Tavakoli&rsquo;s cash compensation is being paid out of Ambac&rsquo;s
available cash and that Ambac Assurance is not living up to the terms of its cost sharing agreement with Ambac. This arrangement
serves to benefit policyholders to the detriment of stockholders. We have also learned that Mr. Tavakoli has incurred excessive
and personal expenses paid for by the Company, including hiring a second personal assistant to primarily assist him with personal
matters, taking a private car service to and from work each day, and often staying for several days in a luxury hotel near Ambac&rsquo;s
headquarters rather than commuting home.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 5.75pt 12pt 5.05pt; text-align: justify; text-indent: 0.7pt"><B>Concerns
regarding Mr. Tavakoli&rsquo;s Integrity and Veracity </B></P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">Canyon
has also previously expressed concern that Mr. Tavakoli may have arranged for an acquaintance to call in during Ambac&rsquo;s 3rd
Quarter earnings call and publicly express support for Mr. Tavakoli being named permanent President and CEO. In stating this concern,
we noted that the caller had been CEO of a company in which a fund managed by Mr. Tavakoli had been a sizable shareholder. In response,
through its counsel, Ambac denied that Mr. Tavakoli&rsquo;s fund had been invested in the same company. That assertion was manifestly
false based on Form 13Fs that had been publicly filed by Mr. Tavakoli&rsquo;s fund, and Ambac ultimately conceded that it had been
incorrect.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">The
fund&rsquo;s investment was held for at least nine quarters per the fund&rsquo;s Form 13Fs, and as of September 30, 2005, comprised
approximately 4.5% of the outstanding common stock of the company. Presumably Mr. Tavakoli was consulted in connection with Ambac&rsquo;s
initial response, and as such, we believe that Ambac&rsquo;s denial raises disturbing questions about Mr. Tavakoli &ndash; particularly
his integrity and veracity &ndash; in this regard. Canyon believes that it is imperative for the Ambac Board to follow up and determine
the justification, if any, for the initial false statement and consider its broader implications.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">All
of the above reinforces the concerns we previously expressed in the March 7 Demand, and in prior correspondence, about the Ambac
Board&rsquo;s appointment, compensation and oversight of Mr. Tavakoli as President and Chief Executive Officer of Ambac, and now
Ambac Assurance. As such they confirm the appropriateness of Canyon&rsquo;s request for the books and records it has sought.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">In
addition, we believe that the disclosures by current and former Ambac employees regarding Mr. Tavakoli&rsquo;s mismanagement of
the Company&rsquo;s finances and excessive spending call for immediate attention by the Ambac Board. We request that the Ambac
Board forthwith discharge its fiduciary duties and systematically review all of Mr. Tavakoli&rsquo;s expenses paid directly or
reimbursed by the Company to determine whether (i) it was appropriate to pay or reimburse them, and (ii) any cost sharing agreements
between Ambac and Ambac Assurance have been followed. The Ambac Board should make the results of its investigation publicly available.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 6.05pt 12pt 5.35pt; text-align: justify; text-indent: 0.45pt">Canyon
reserves all rights and remedies it may have at law or in equity.</P>

<P STYLE="font: 11pt/99% Calibri, Helvetica, Sans-Serif; margin: 0.3pt 0 12pt 5.75pt; text-align: justify">Sincerely,</P>

<P STYLE="font: 11pt/13.75pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 5.55pt; text-align: justify">CANYON<FONT STYLE="letter-spacing: -0.25pt">
</FONT>CAPITAL<FONT STYLE="letter-spacing: -0.55pt"> </FONT>ADVISORS<FONT STYLE="letter-spacing: -0.05pt"> </FONT>LLC,</P>

<P STYLE="font: 11pt/13.75pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 5.35pt; text-align: justify">on<FONT STYLE="letter-spacing: -0.6pt">
</FONT>behalf<FONT STYLE="letter-spacing: 0.7pt"> </FONT>of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>The Canyon Value Realization
Master Fund, L.P.</P>

<P STYLE="font: 11pt/13.75pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 5.35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/13.75pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 5.55pt; text-align: justify">By: Mitchell R. Julis</P>

<P STYLE="font: 11pt/13.75pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 5.55pt; text-align: justify; text-indent: 0.5in">Co-Chairman
and Co-Chief Executive Officer</P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"><B></B></P>

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<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"><B>About Canyon Capital Advisors LLC</B></P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 7.5pt">Canyon Capital Advisors LLC is a leading alternative asset
manager serving institutional clients worldwide. The firm seeks to achieve superior, risk-adjusted returns in excess of the debt
and equity market indices with lower volatility. Canyon Capital and its affiliates currently manage investment funds and separate
accounts amounting to over $20 billion in assets with a staff of over 200, including more than 100 investment professionals. The
firm was founded in 1990 and is headquartered in Los Angeles, with offices in London, New York, Shanghai and Tokyo. Canyon Capital
has been an SEC registered investment advisor since 1994.</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"><B>Media Contact</B></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">Mike Geller / Nadia Damouni</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">Edelman</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">212-729-2163 / 917-344-4771</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">Mike.Geller@edelman.com / Nadia.damouni@edelman.com</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 12pt">CANYON CAPITAL ADVISORS LLC, THE CANYON VALUE REALIZATION
MASTER FUND, L.P., MITCHELL R. JULIS AND JOSHUA S. FRIEDMAN (COLLECTIVELY, &quot;CANYON&quot;), FREDERICK ARNOLD, JOHN BRECKER,
AND EUGENE DAVIS (COLLECTIVELY WITH CANYON, THE &ldquo;PARTICIPANTS&rdquo;) INTEND TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION
(THE &quot;SEC&quot;) A DEFINITIVE PROXY STATEMENT AND ACCOMPANYING FORM OF PROXY CARD TO BE USED IN CONNECTION WITH THE PARTICIPANTS'
POTENTIAL SOLICITATION OF PROXIES FROM THE STOCKHOLDERS OF AMBAC FINANCIAL GROUP, INC. (THE &quot;COMPANY&quot;) FOR USE AT THE
COMPANY'S 2016 ANNUAL MEETING OF STOCKHOLDERS (THE &quot;PROXY SOLICITATION&quot;). ALL STOCKHOLDERS OF THE COMPANY ARE ADVISED
TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO THE PROXY SOLICITATION, WHEN THEY BECOME AVAILABLE, BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL INFORMATION RELATED TO THE PARTICIPANTS. WHEN COMPLETED, THE DEFINITIVE
PROXY STATEMENT AND AN ACCOMPANYING PROXY CARD WILL BE FURNISHED TO SOME OR ALL OF THE COMPANY'S STOCKHOLDERS AND WILL BE, ALONG
WITH OTHER RELEVANT DOCUMENTS, AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT <U>HTTP://WWW.SEC.GOV/</U>.</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 12pt">INFORMATION ABOUT THE PARTICIPANTS AND A DESCRIPTION OF
THEIR DIRECT OR INDIRECT INTERESTS BY SECURITY HOLDINGS ARE CONTAINED IN EXHIBIT 3 TO THE SCHEDULE 14A FILED BY CANYON WITH THE
SEC ON MARCH 14, 2016. THIS DOCUMENT CAN BE OBTAINED FREE OF CHARGE FROM THE SOURCE INDICATED ABOVE.</P>






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