* Ambac pays $2.6 bln cash, $2 bln notes to counterparties
* State regulators took over Ambac’s worst assets in March
NEW YORK, June 7 (Reuters) - Bond insurer Ambac Financial Group ABK.N on Monday said it agreed with counterparties to end its remaining $16.4 billion exposure to a class of structured debt securities.
Ambac said it agreed to pay $2.6 billion in cash and $2 billion in new surplus notes to several counterparties on collateralized debt obligations based on asset-backed securities.
The bond insurer separately commuted some other asset-backed securities, worth about $1.4 billion, for cash payments of $96.5 million, according to the company’s statement.
Ambac said it hopes to commute some other securities in the next 12 months for a maximum of about $115 million in cash and $60 million of surplus notes from Ambac Assurance Corp.
State regulators in March took over roughly $64 billion of the worst assets at the bond insurer. The insurer has been battling crippling losses from risky mortgage securities amid the financial crisis.
Ambac shares closed down more than 10 percent at $1.03 on Monday.
Reporting by Elinor Comlay