Syncora GuaranteeInc. has reached an agreement in principle for the settlement of itssole existing claim and related litigation with Lehman Brothers Holdings Inc. and Structured Asset SecuritiesCorp.
If consummated, the settlement will resolve all claims with respectto Syncora Guarantee's proof of claim against Lehman Brothers and Structured AssetSecurities relating to the GreenPoint Mortgage Funding Trust 2006-HE1 transaction,in return for an allowed unsecured claim of $37 million in the Lehman bankruptcyestate.
The Lehman Brothers bankruptcy estate is projecting cumulativepayments of approximately 36 cents on the dollar to be paid on allowed unsecuredclaims. The settlement remains subject to final definitive documentation.
If consummated, the settlement is expected to increase the GAAPnet income and shareholders' equity of Syncora Guarantee parent by the amount ultimatelypaid by the bankruptcy estate and is expected to have the same effect on SyncoraGuarantee's statutory-basis net income and policyholders' surplus.