The chances that Ambac Assurance Corp. will be able to keep $700 million of disputed tax refunds increased last week when a federal court in Wisconsin again threw out the Internal Revenue Service’s (IRS) case against the bond insurer.

The IRS claims that Wisconsin-based Ambac — which had $313 million of cash in the middle of 2010 and whose parent is bankrupt — has obtained a “completely unprecedented” order from state courts that prevents the agency from retrieving federal taxes.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.