Syncora-Backed RMBS Saga Extended Again

The fund buying residential mortgage-backed securities insured by Syncora Guarantee Inc. Friday announced it had made some progress in receiving tenders and once again extended its deadline, to 11:59 p.m. Friday night.

Syncora said the fund had received tender offers to remediate RMBS exposures worth 40.7 remediation points, up from 27.4 remediation points earlier in the week. It needs 72 remediation points to complete the deal.

The tender offer is part of Syncora's strategy to remedy its $2.4 billion policyholders' deficit. The bond insurer last week announced it had executed an agreement with 25 financial counterparties to commute or restructure $56 billion in credit-default swap exposure.

Both deals need to go through for Syncora to fix the policyholders' deficit.

The BCP Voyager Master Funds SPC Ltd., acting on behalf of and for the account of the Distressed Opportunities Master Segregated Portfolio, is purchasing the securities. Syncora Guarantee is providing up to $375 million in financing.

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