NEW YORK, Sept. 16 /PRNewswire-FirstCall/ -- Syncora Guarantee Inc., a wholly owned subsidiary of Syncora Holdings Ltd. (NYSE: SCA); Financial Guaranty Insurance Company (collectively the 'Bond Insurers'); and The Bank of New York Mellon, as Trustee for $3.2 billion of Jefferson County Sewer Revenue Warrants acting at the direction of the Bond Insurers, today filed suit against Jefferson County Alabama (the 'County') and the County's Commissioners. The Bond Insurers insure approximately $2.8 billion in Jefferson County Sewer Revenue Warrants.

The suit, which was filed in the United States District Court for the Northern District of Alabama, includes a request to the Court to appoint an independent and qualified receiver to: manage the Jefferson County Sewer System; consider and implement any appropriate rate modifications and other sources of revenue; ensure compliance with applicable laws; assist in achieving an appropriate financial resolution; and pursue any bona fide claims.

'After many months of efforts by the Bond Insurers, other creditors and interested parties to work with Jefferson County to resolve this financial crisis, we are disappointed to have to take this action,' commented Edward Hubbard, President of Syncora Guarantee Inc. 'However, the County Commission's failure to meet its obligations has left us with no other alternative. We are hopeful that the appointment of an independent party will provide a solution that fairly accommodates the needs of the County, its citizens and its creditors.'

'Despite the current state of affairs, we believe the County still has an opportunity available to move forward and achieve a mutually satisfactory outcome for all parties. If the County is willing to take this path, we look forward to working together in a constructive manner,' said Hubbard.

About Syncora Guarantee Inc.

Syncora Guarantee Inc. is a wholly owned subsidiary of Syncora Holdings Ltd.

About Financial Guaranty Insurance Company

Financial Guaranty Insurance Company is a wholly owned subsidiary of FGIC Corporation.

    Media and Investors Contact:
    Michael Gormley
    Syncora Guarantee Inc.
    +1 212-478-3463
    michael.gormley@scafg.com

FORWARD-LOOKING STATEMENTS

This release contains statements about future results, plans and events that may constitute 'forward-looking' statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.