Ambac Financial Group Inc. yesterday said that it has reached a $101.9 million settlement of a dispute with the Internal Revenue Service, a key step in the bond insurer's efforts to emerge from bankruptcy, Reuters reported yesterday. The settlement calls for $1.9 million to be paid by Ambac, and for $100 million to be paid by its Ambac Assurance Corp. unit or a "segregated account" overseen by Wisconsin's insurance commissioner that contains many of the unit's obligations. It also reduces by $1.1 billion Ambac's net operating loss carry-forwards, which the company could otherwise use to reduce future tax liability.
