An extension Syncora Holdings and its subsidiaries reached to extend the negotiation period with counterparties on credit default swaps and other financial guarantee contracts has now expired, the company said in a filing with the Securities and Exchange Commission Monday night.
The companies reached an agreement Oct. 30 to extend the date to Oct. 31 from Oct. 15. Syncora says it will continue negotiating with counterparties, although it cannot guarantee another extension.
Syncora announced last month it had hired JPMorgan to work as an adviser on the negotiations. Syncora earlier this year paid Merrill Lynch $500 million to commute eight credit-default swaps exposures backing $3.74 billion. That deal along with an agreement signed with former parent XL Capital allowed Syncora to avoid insolvency, the New York Insurance Department said at the time.