Fund Purchasing Syncora-Backed RMBS Extends Deadline to Wednesday

The fund purchasing residential mortgage-backed securities insured by Syncora Guarantee Inc. has once again extended the expiration date of the offer, to 11:59 p.m. Wednesday from 11:59 p.m. Monday.

The tender offer for the Syncora-backed RMBS represents one part of Syncora's plan to remedy its $2.4 billion policyholders' deficit. The bond insurer in May executed an agreement with 25 financial counterparties to commute or restructure $56 billion in credit-default swap exposure.

Both deals must go through to fix the deficit.

The fund purchasing the securities said it has reached agreements to tender RMBS securities with a total of 53.4 remediation points. As of June 9, tender offers for the remediation of 51.5 remediation points had been made. Syncora needs securities representing 72 remediation points to be tendered to complete the deal.

The fund purchasing the securities is the BCP Voyager Master Funds SPC, Ltd., acting on behalf of the and for the account of, the Distressed Opportunities Master Segregated Portfolio. Syncora has offered to provide financing of up to $420 million for the offering.

The New York Insurance Department said it continues to monitor the bond insurer's progress. The insurer has since May suspended all its claims payments in response to an order signed by the department.

"Syncora has extended the tender offer two days (to June 24th) as they continue to negotiate with the holders of insured RMBS in their effort to correct the insolvency," a department spokesman wrote in an e-mail. "The department is receiving regular updates from Syncora management and will be evaluating their progress."

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