BCP Voyager Master Fund SPC Ltd., which is in the process of purchasing residential mortgage-backed securities insured by Syncora Guarantee Inc., will once again extend the period during which holders can tender their holdings.
The early consideration period during which holders can receive a premium will end at 11:59 p.m. Eastern Daylight Time on April 24. The final offer will expire at 11:59 p.m. on May 8.
Prior to the most recent extension, the early deadline was April 16 and the regular deadline was April 30. Syncora has announced it will suspend claims payments temporarily April 26 if it does not complete its restructuring plans, which include the fund repurchasing the securities and agreements with its counterparties to commute billions in structured finance exposure.
New York insurance regulators have imposed a deadline of May 29 for Syncora to complete its restructuring and meet its minimum capital requirements. The bond insurer reported a policyholders' deficit of $2.4 billion as of Dec. 31.
Although Syncora will suspend payments beginning April 26 if it does not meet the minimum capital requirements, it believes it can pay all current claims. But it may need the cash to commute some of its structured finance exposures. In addition, both Syncora and insurance regulators wanted to avoid having any payments deemed "preferential" if the insurer ends up in rehabilitation or liquidation.
With the transactions Syncora is contemplating, it believes the $2.4 billion policyholders' surplus would have been a $150 million to $375 million policyholders' deficit as of Dec. 31. Syncora is rated Ca with a developing outlook by Moody's Investors Service and CC with a negative outlook by Standard & Poor's.
Syncora also earlier this month announced that it was voluntarily deregistering its common and preferred shares. On April 10, it said it expected the change to become effective within 90 days.
As a result, Syncora's obligation to file certain financial forms is suspended. It says it still plans to provide some financial updates on its Web site at www.syncora.com.
Syncora, which trades over the counter, closed at $0.20 yesterday.
