CIFG Reaches Agreement With Derivatives Counterparties

HAMILTON, Bermuda, Sept. 2 /PRNewswire/ -- CIFG Holding, Ltd., the holding
company for CIFG's financial guaranty subsidiaries, announced today that it,
along with its principal shareholders, Banque Populaire Group and Caisse
d'Epargne Group, have entered into a Memorandum of Understanding with more
than 75 percent, based on par outstanding, of credit default swap
counterparties and insured bondholders on CIFG's insured ABS CDO exposures and
certain specified CRE CDO exposures.
Upon the closing of the transactions contemplated under the non-binding
Memorandum, CIFG will have successfully commuted approximately $12 billion in
notional ABS CDO and CRE CDO exposures in exchange for cash and equity. CIFG
anticipates that the contemplated transactions will substantially reduce
CIFG's exposure to problematic derivatives, resulting in a significantly
improved capital position and claims paying resources sufficient to satisfy
rating agency investment grade capital requirements.
As part of the Memorandum, CIFG will seek to reinsure its public finance
portfolio with a Double-A rated insurer, thus providing municipal investors
with important new enhanced protection. The final agreement is subject to the
execution of definitive documentation by 100 percent of the credit default
swap counterparties to the ABS CDO transactions and the designated CRE CDO
transactions. The closing is also subject to a number of other conditions,
including obtaining any required approvals from Bermuda, New York and French
regulators.
"While much work remains to be done, this is a major step forward. When we
reach final agreement, it will work to the mutual benefit of all parties, as
it will restore CIFG to financial health and better position the company to
honor its obligations to policyholders," said John Pizzarelli, Chief Executive
Officer of CIFG. "I would especially like to thank New York State Insurance
Superintendent, Eric Dinallo, and his team for their continuing support and
guidance in leading us through this process."
CIFG Holding Ltd. is the holding company for the CIFG group of companies
including financial guarantors CIFG Guaranty Ltd., CIFG Europe, CIFG Assurance
North America, Inc.
For additional information, please contact:
Michael Ballinger at (212) 339-5507 or m.ballinger@cifg.com
Steve Pachella at (212) 909-3955 or s.pachella@cifg.com
Thierry Dissaux at 33 1 58 55 65 13 or t.dissaux@cifg.com.

SOURCE CIFG Holding, Ltd.

Michael Ballinger, +1-212-339-5507, m.ballinger@cifg.com, or Steve Pachella,
+1-212-909-3955, s.pachella@cifg.com, or Thierry Dissaux, +33-1-58-55-65-13,
t.dissaux@cifg.com, all of CIFG Holding, Ltd.