Ambac Assurance Corp.’s rehabilitation plan won’t take effect in May as planned, meaning that frozen claims on roughly $50 billion of risky assets will remain unpaid until further notice.

Ted Nickel, Wisconsin insurance commissioner and rehabilitator of Ambac, released a statement Monday saying he “is not satisfied that the conditions necessary for the plan to become effective have all been satisfied, and believes that this decision is in the best interest of the policyholders.”

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