What were the general terms of the restructuring agreement?
Under the terms of the restructuring agreement, the Company made claim settlement payments to its insured credit swap counterparties and the related insurance contracts were terminated. The Company also issued non-interest bearing surplus notes with 95% issued for the benefit of the swap counterparties. The remaining 5% was issued to Manifold Capital (formerly ACA Capital Holdings, Inc.). Manifold’s surplus notes are non-voting interests. The surplus notes issued to the swap counterparties were in the form of voting or non-voting interests at each counterparty’s discretion. In addition, the Company negotiated settlements of certain other obligations. The most significant of those obligations was the settlement of a $100 million medium term note obligation insured by the Company. Under the medium term note restructuring, holders received approximately $47 million and title to certain collateralized debt obligation loan interests in full satisfaction of the claims of the noteholders agai
