Ambac Financial Group Inc. has experienced further delays in launching muni-only subsidiary Everspan Financial Guarantee Corp., its president and chief executive officer said yesterday.

Despite Ambac's attempts to structure the company as independent, rating agencies have suggested they are not sufficient and that Everspan may need to find a third-party investor to contribute capital to further ensure its "separateness" from its parent, bond insurer Ambac Assurance Corp., according to Ambac Financial. The company is in discussions with a number of potential investors, but the past few months have been "frustrating," said Ambac president and CEO David Wallis.

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