Bond insurer Syncora Guarantee late Thursday announced it had executed a master transaction agreement with 25 financial counterparties that lets it commute or restructure all of its $56 billion in credit-default swap exposure.

The deal is a key part of Syncora's efforts to remedy its policyholders' deficit of nearly $2.4 billion and avoid regulatory takeover. The New York Insurance Department had issued an order April 10 giving Syncora until last Friday to take "steps as may be necessary" to meet minimum surplus requirements.

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