<SEC-DOCUMENT>0000902664-16-007015.txt : 20160513
<SEC-HEADER>0000902664-16-007015.hdr.sgml : 20160513
<ACCEPTANCE-DATETIME>20160513145809
ACCESSION NUMBER:		0000902664-16-007015
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160513
DATE AS OF CHANGE:		20160513
EFFECTIVENESS DATE:		20160513

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:		161647826

	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>p16-1267dfan14a.htm
<DESCRIPTION>AMBAC FINANCIAL GROUP, INC.
<TEXT>
<HTML>
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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">[x]</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">[&nbsp;&nbsp;&nbsp;]</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: 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>
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    <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;&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>
<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>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">Canyon Capital Withdraws Proxy Materials
and Urges Rejection of Management's Compensation Proposal</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 7.5pt; text-align: center"><B>Urges Stockholders and the New Board
to Remain Vigilant in Improving Governance and Accountability</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">LOS ANGELES,&nbsp;May 13, 2016&nbsp; --&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:&nbsp;<FONT STYLE="color: #318DA8">AMBC</FONT>)
(&quot;Ambac&quot; or the &quot;Company&quot;), has determined to withdraw its proxy materials filed in connection with the Company's
2016 Annual Meeting of Stockholders, scheduled for&nbsp;May 18, 2016.&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">The recent appointment of two new directors at the urging
of stockholders, market participants' willingness to challenge management, the recognition by the two leading proxy advisory firms
that management's compensation is excessive, and the Company's recent &ndash; albeit belated &ndash; responsiveness to the concern
that it do more to reduce outstanding obligations, are all significant positive developments, indicating that Canyon Capital's
concerns have resonated.&nbsp; Accordingly, Canyon Capital has determined to withdraw its proxy material, to encourage the new
Board to begin its important work immediately and without the distraction of the Company's divisive opposition to Canyon Capital's
campaign.&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Although Canyon Capital is withdrawing its proxy materials
and the candidacy of its nominee,&nbsp;Frederick Arnold, for the Board of Directors, it urges stockholders to vote against management's
Proposal 2 seeking stockholder approval for management's compensation by checking the &quot;Against&quot; box on management's white
proxy card.&nbsp; That is what the two leading independent proxy advisory firms, ISS and Glass Lewis, have recommended.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">The core goal of Canyon Capital's proxy campaign has been
to protect stockholder interests by assuring management's truthfulness, integrity, and competence.&nbsp; As the Company's earnings
call on&nbsp;May 11&nbsp;reflects, much remains to be done in these respects.&nbsp; To that end, Canyon Capital continues to believe
that another genuinely independent voice would improve the balance on the Board.&nbsp; The appointment of two new outside Board
directors, one from a major stockholder with concerns similar to Canyon's, is a partial step in the right direction. &nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Despite withdrawing its proxy materials, Canyon Capital
urges stockholders and the new Board members to remain vigilant, as Canyon Capital intends to be.&nbsp; Continued focus and activism
from all stockholders will make a major difference in keeping management effective and honest and assuring management's and the
Board's accountability and, importantly, will immeasurably help the two new outside directors do their job.</P>


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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt"><U>Canyon's Concerns and Positive Developments Since
They Were Voiced</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Over the past several months, Canyon Capital has publicly
expressed significant concerns with the Company's management and direction, the excessive compensation awarded to the Company's
CEO and directors, and the Company's Board of Directors' failure to prevent or correct management's missteps with the company and
misdirection with investors.&nbsp; Several other Ambac stockholders clearly had similar concerns, resulting in two new directors
being appointed to the Board, including one named by Cornwall Capital Management, LP (&quot;Cornwall Capital&quot;), another major
stockholder.&nbsp; As Canyon Capital previously has indicated, it believes the appointment of these directors was a significant
step in the right direction.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Canyon Capital is also pleased that ISS and Glass Lewis
recently echoed its concerns regarding Ambac CEO&nbsp;Nader Tavakoli's compensation, and both issued reports advising stockholders
to vote against the Company's proposal to approve executive compensation at the 2016 Annual Meeting.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">In particular, ISS referred to Mr. Tavakoli's compensation
as &quot;outsized&quot; and &quot;generous,&quot; and noted his 2016 pay package was granted &quot;despite declining shareholder
return performance&quot; during his time as interim CEO.&nbsp; ISS also pointed out that the vesting of restricted stock units
Mr. Tavakoli was granted &quot;accelerate[s] if he is not reelected to the board or is removed without cause,&quot; creating a
&quot;'pay for failure'&quot; risk.&nbsp; Glass Lewis noted Mr. Tavakoli's compensation appeared to be &quot;generous considering
the Company's size.&quot;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Both firms agreed with Canyon Capital's arguments in its&nbsp;May
2&nbsp;presentation that too little of Mr. Tavakoli's pay is tied to performance, especially given the&nbsp;$4.275 million&nbsp;time-based
grant of stock &ndash; with no performance component &ndash; he received upon signing his employment agreement.&nbsp; ISS, considering
both qualitative and quantitative measures, also noted that there was a &quot;pay for performance misalignment,&quot; and stated:
&quot;CEO pay has outranked company TSR performance over the last two years, relative to reasonably comparable peers.&quot;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Others too are more closely scrutinizing the Company's
disclosures, and demanding greater transparency.&nbsp; During the Company's&nbsp;May 11&nbsp;earnings call, an analyst who inquired
about a particular Company policy was assured by management that the Company is &quot;very compliant.&quot;&nbsp; Noting the Company's
filing of an amended annual report that very morning &ndash; which disclosed that a material weakness had existed in the Company's
internal controls over financial reporting in 2015 &ndash; the analyst said, &quot;I guess everyone's belief was that we didn't
have any material internal control weaknesses.&nbsp; So I'm not sure what you're telling me in public is actually what's happening
at the Company.&quot;&nbsp; That concern about the Company's level of candor reflects one of the central issues that Canyon Capital
has raised.</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Other questions were asked during the call as well, although
the Company's unwillingness to be straightforward was telling.&nbsp; When asked about capital allocation, Mr. Tavakoli responded,
&quot;[p]art of the secret sauce here is to sort of keep people guessing a little bit as to what it is [we are] going to do.&quot;&nbsp;
And when asked to explain the Company's claim that its policy buybacks are yielding an effective rate of return of 8.7%, management
responded that it is an estimate &quot;based on management's own assessment.&nbsp; It's not really informed by anything other
than our judgments and I think disclosing [our] estimates at this time is not something we're prepared to do.&quot;&nbsp; Canyon
Capital is heartened by the fact that important questions are being asked, and hopes the Company will be pressed to respond informatively
and honestly.</P>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">In that regard, Canyon Capital notes as well that management
has touted its relationship with the Office of the Commissioner of Insurance, suggesting that the appointment of the current Special
Deputy Commissioner for the Segregated Account of Ambac Assurance Corporation on only a part time basis is indicative of its comfort
with the Board's and management's governance and direction.&nbsp; Yet just this week the Commissioner sought to have the Special
Deputy Commissioner serve full time.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Canyon Capital recently has had the opportunity to meet
with&nbsp;Ian Haft, the new independent director appointed to the Ambac Board as a result of Cornwall Capital's efforts.&nbsp;
Canyon Capital believes Mr. Haft takes the role of director seriously, including assuring the competency, integrity and accountability
of the Company's management &ndash; issues at the core of Canyon Capital's proxy challenge.&nbsp; Canyon Capital is hopeful that&nbsp;David
Herzog&nbsp;and&nbsp;James Prieur, the other recently appointed independent directors, will join Mr. Haft in doing whatever is
necessary to determine that those values have been, and going forward will be, maintained at the Company.&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Canyon Capital also notes that according to the Company's&nbsp;May
10&nbsp;announcement of its first quarter 2016 earnings, it repurchased&nbsp;$168 million&nbsp;of insured Local Insight Media bonds.
&nbsp;That is consistent with Canyon Capital's urging that the Company actively reduce such exposure when opportunities present
themselves in the legal and regulatory process and in the marketplace as part of an intelligent and systemic strategy to manage
its balance sheet and create value for stockholders.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt"><U>Canyon's Withdrawal and the Need for Continued Stockholder
and Director Vigilance</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Although it is withdrawing from the proxy contest, Canyon
Capital urges stockholders to remain vigilant.&nbsp; The firm continues to be concerned that management is not acting consistently
with its responsibilities, and needs to put the interests of stockholders above its own.&nbsp; As the&nbsp;May 11&nbsp;earnings
call reflects, issues remain with management candor as well.&nbsp; Consistent with the conclusions of Glass Lewis and ISS, Canyon
Capital also reminds stockholders to vote against the company's recommendation for compensation of its named executives.&nbsp;</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">Canyon Capital is enormously grateful for the support it has received from other Ambac stockholders throughout
this process.&nbsp; It thanks&nbsp;Frederick Arnold&nbsp;as well, for his willingness as Canyon Capital's nominee to help effect
positive change at the Company.&nbsp; The firm will continue to closely monitor the Company's performance and public statements,
and maintain its efforts to bring accountability, honesty and effectiveness to the Company's governance.&nbsp; Canyon Capital expects
that the new Board will do the same, exercising its responsibilities to the fullest extent in overseeing Company management.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt"><B>About Canyon Capital Advisors LLC</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">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&nbsp;$20 billion&nbsp;in assets with a staff of over 200, including more than 100
investment professionals. The firm was founded in 1990 and is headquartered in&nbsp;Los Angeles, with offices
in&nbsp;London,&nbsp;New York,&nbsp;Shanghai&nbsp;and&nbsp;Tokyo. Canyon Capital has been an SEC registered investment
advisor since 1994.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt"><B>Media Contact</B><BR>
<FONT STYLE="font-weight: normal">Mike Geller&nbsp;/&nbsp;Nadia Damouni</FONT><BR>
<FONT STYLE="font-weight: normal">Edelman</FONT><BR>
<FONT STYLE="font-weight: normal">212-729-2163 / 917-344-4771</FONT><BR>
<FONT STYLE="font-weight: normal; color: #318DA8"><U>mike.geller@edelman.com</U></FONT><FONT STYLE="font-weight: normal">&nbsp;/&nbsp;</FONT><FONT STYLE="font-weight: normal; color: #318DA8"><U>nadia.damouni@edelman.com</U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt"><B><U>Investor Contact</U></B><BR>
<FONT STYLE="font-weight: normal">Bruce Goldfarb&nbsp;/&nbsp;Pat McHugh&nbsp;/&nbsp;Tony Vecchio</FONT><BR>
<FONT STYLE="font-weight: normal">Okapi Partners&nbsp;</FONT><BR>
<FONT STYLE="font-weight: normal">212-297-0720&nbsp;</FONT><BR>
<FONT STYLE="font-weight: normal; color: #318DA8"><U>bhgoldfarb@okapipartners.com</U></FONT><FONT STYLE="font-weight: normal">&nbsp;/&nbsp;</FONT><FONT STYLE="font-weight: normal; color: #318DA8"><U>pmchugh@okapipartners.com</U></FONT><FONT STYLE="font-weight: normal">&nbsp;/&nbsp;</FONT><FONT STYLE="font-weight: normal; color: #318DA8"><U>TVecchio@okapipartners.com</U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt">CANYON CAPITAL ADVISORS LLC, THE CANYON VALUE
REALIZATION MASTER FUND, L.P., MITCHELL R. JULIS AND JOSHUA S. FRIEDMAN (COLLECTIVELY, &quot;CANYON&quot;) AND FREDERICK
ARNOLD (COLLECTIVELY WITH CANYON, THE &quot;PARTICIPANTS&quot;) HAVE FILED A DEFINITIVE PROXY STATEMENT WITH THE SECURITIES
AND EXCHANGE COMMISSION (THE &quot;SEC&quot;), ALONG WITH AN ACCOMPANYING GOLD PROXY CARD TO BE USED IN CONNECTION WITH THE
PARTICIPANTS' 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 FOREGOING PROXY MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL
INFORMATION RELATED TO THE PARTICIPANTS. THE DEFINITIVE PROXY STATEMENT AND AN ACCOMPANYING PROXY </P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 26.25pt"> CARD WILL BE FURNISHED TO SOME OR ALL OF THE COMPANY'S STOCKHOLDERS AND ARE, ALONG WITH OTHER RELEVANT DOCUMENTS, AVAILABLE AT NO CHARGE
ON THE SEC'S WEBSITE AT&nbsp;<FONT STYLE="color: #318DA8"><U>HTTP://WWW.SEC.GOV/</U></FONT>, FROM CANYON'S PROXY SOLICITOR, OKAPI
PARTNERS, AND AT&nbsp;<FONT STYLE="color: #318DA8"><U>HTTP://WWW.AMBACSTOCKHOLDERRIGHTS.COM</U></FONT>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">INFORMATION ABOUT THE PARTICIPANTS AND A DESCRIPTION OF THEIR
DIRECT OR INDIRECT INTERESTS BY SECURITY HOLDINGS ARE CONTAINED IN THE DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A FILED BY CANYON
WITH THE SEC ON APRIL 25, 2016. THIS DOCUMENT CAN BE OBTAINED FREE OF CHARGE FROM THE SOURCES INDICATED ABOVE.</P>


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