Ambac Financial Suing The United States (ABK)

Ambac Financial ABK has sued the United States to block the seizure of $700 billion refunds which it said could destroy its ability to reorganize in bankruptcy court. The company cites the IRS as the sole reason why the bankruptcy may not go through. The IRS states the losses relate to credit default swaps on which it insured municipal, corporate and asset-backed debt cannot be refunded. The company is fighting to offset restructuring costs via writing off $7.3 billion in operating costs. Ambac shares are down 55% to 21c on the day, NYSE halted trading in its shares this morning.