Bankruptcy Judge Shelley C. Chapman yesterday approved Ambac Financial Group Inc.'s settlement with the Internal Revenue Service over the very tax issues that helped tip the bond insurer into its November 2010 bankruptcy, inching Ambac toward emerging from chapter 11 protection, Dow Jones Newswires reported yesterday. The approved settlement calls for Ambac to pay the IRS $101.9 million to settle claims over how the company accounted for credit default swaps in the years before its bankruptcy filing. The IRS had claimed it was owed $802 million, and while the two sides agreed to many of the terms of the settlement last year, the agreement was finally consummated earlier this month.
