NEW YORK (Bloomberg) — FGIC Corp., the money-losing bond insurer owned by Blackstone Group LP and PMI Group Inc., is seeking out investors and may consider selling the company as it approaches a deadline to shore up capital.

FGIC, which last month reported a $1.89 billion fourth- quarter net loss, is considering raising money for a new AAA rated guarantor that would back only public finance securities, the New York-based company said in a statement late on Monday. Other options include selling all or part of the company or reinsuring guarantees with a third party, the statement said.

"The company is optimistic that within the coming weeks it will have a course of action to propose to its board," FGIC said in the statement.

FGIC is among the worst hit of the bond insurers after straying from its business of guaranteeing municipal bonds into backing securities that rely on sub-prime mortgage payments. The company lost its top AAA bond insurer credit ratings at Standard & Poor's, Moody's Investors Service and Fitch Ratings earlier this year, business-crippling downgrades that left the company scrambling to find new capital and retool its business model.

"We've told FGIC they need to have a plan for raising capital by about the first week in May," said David Neustadt, a spokesman for the New York State Insurance Department. "We will have to consider alternatives" if the company doesn't present a plan, Neustadt said. He declined to name the alternatives.

FGIC said last month that it needs to file a plan of action to the state insurance department because its amount of total risk has exceeded a regulatory limit. The company's capital surplus was about $195 million above statutory requirements as of December 31, according to numbers provided by the company.

New York State Insurance Commissioner Eric Dinallo said earlier this year that he is working with FGIC to prevent the company's ratings from falling further. FGIC filed a letter of intent in February to create a separate company for its municipal and public finance bond-insurance operations.

FGIC said March 17 that it wrote down the value of contracts on securities it guaranteed by $1.71 billion in the fourth quarter and recorded $1.23 billion in expenses to pay claims. FGIC at the time said it's underwriting no new business and had hired Goldman Sachs Group Inc. to provide it with advice.

CDOs, which repackage assets such as mortgage bonds and buyout loans into new securities, have accounted for the biggest portion of the $245 billion in asset writedowns and credit losses since the start of 2007 at the world's biggest banks.