Syncora Holdings Ltd. has hired JPMorgan as an adviser on its bond insurer subsidiary Syncora Guarantee Inc.'s negotiations with bank counterparties.
JPMorgan will work with Syncora's legal advisers during negotiations and help "in identifying and analyzing strategic alternatives with respect to its portfolio of credit default swaps and financial guarantee contracts."
Syncora will pay JPMorgan $10 million based on certain benchmarks with a possible $10 million bonus paid at Syncora's discretion upon "consummation of a restructuring with any of certain specified counterparties," Syncora Holdings said in an SEC filing.
Syncora in July paid Merrill Lynch & Co. $500 million to commute eight credit-default swaps backing $3.74 billion. Along with a deal signed with former parent XL Capital Ltd., it helped Syncora avoid insolvency, the New York Insurance Department said at the time of the deal.
"Engaging JPMorgan to assist Syncora's legal advisers in their ongoing analysis of Syncora Guarantee's CDS and financial guarantee exposures is an important step in moving forward with the next phase of our strategic plan," Susan Comparato, acting chief executive officer of Syncora, said in a statement.