SAN FRANCISCO — Hercules, Calif., said it has tentatively settled a $4 million lawsuit brought by Ambac Assurance Corp. over a default by the city’s redevelopment agency.

The settlement with Ambac, which insures the defaulted bonds, will keep the city from having to start the Chapter 9 bankruptcy process, city manager Steve Duran said in a statement Friday.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.