Statement is Out
Looks very good but the follow are two keep points which come from the Subsequent Events Section
This one increase Common Equity by $37 million
Settlement of Proof of Claim with Lehman Brothers
On July 22, 2016, SGI announced that it had reached an agreement in principle for the settlement of its sole existing claim and related litigation with LBHI and Structured Asset Securities Corporation. On September 20, 2016, the settlement became effective. The settlement resolves all claims in respect of the Syncora Claim in return for an allowed unsecured claim of $37.0 million in the Lehman bankruptcy estate. The Lehman bankruptcy payout on unsecured claims is currently approximately 36 cents on the dollar. This transaction is considered a Type II – Subsequent Event for which a gain will be recognized in the third quarter of 2016, when the previous approval contingencies were resolved. The settlement is expected to increase the Company’s net income and shareholders’ equity by the amount ultimately paid by the Lehman bankruptcy estate.
This one is very important because it takes away some of the overhang from the future Liquidity Issue that has been hanging over Syncora for years now
Pike Pointe Board Approves Distribution to Syncora Guarantee
The Board of Managers of Pike Pointe approved a distribution of $50.0 million to SGI conditioned upon the successful closing of the restructuring transactions which took place on August 12, 2016 as described above. As Pike Pointe is a wholly-owned subsidiary of SGI, this distribution will not have an effect on the Company’s consolidated financial statements, but will increase SGI’s liquidity position by such amount. This distribution was made on August 12, 2016.
As a result of the aforementioned restructuring transactions and liquidity enhancing measures, SGI’s liquidity position is expected to materially improve its ability to satisfy future obligations and therefore mitigate certain of the significant risks and uncertainties described in Note 2.
AI
