BIRMINGHAM, Ala., June 3, 2013 /PRNewswire/ -- Triad Guaranty
Inc. (the "Company") (OTC Pink: TGIC) announced today that it has
filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (the "Bankruptcy Code") in
the United States Bankruptcy Court
for the District of Delaware. The Company also announced
today that the Magistrate Judge for the U.S. District Court of the
Middle District of North Carolina
issued an order denying the Company's motion to dismiss the pending
Phillips class action lawsuit against the Company and two of its
former officers alleging violations of federal securities
laws. As of today, the Company has not determined whether to
appeal this decision and intends to continue to vigorously defend
itself in this action.
As previously reported by the Company, on December 11, 2012, the Company's mortgage insurer
subsidiary, Triad Guaranty Insurance Corporation ("TGIC"), was
placed into rehabilitation, whereby the Illinois Department of
Insurance was vested with possession and control over all of TGIC's
assets and operations. As a result, the Company's Board of
Directors has concluded that filing for Chapter 11 protection under
the Bankruptcy Code is in the best interest of the Company's
stakeholders. The Company expects that this Chapter 11
proceeding will provide it with the opportunity to pursue strategic
alternatives to a liquidation.
On January 28, 2013, the Company
deregistered its common stock under the Securities Exchange Act of
1934 and ceased filing periodic reports with the SEC.
Following deregistration, the Company's common stock has been
quoted on the OTC Pink tier operated by OTC Markets Group, a
centralized electronic quotation service for over-the-counter
securities. For more information, Company stockholders may
access the Company's website, www.triadguarantyinc.com.
SOURCE Triad Guaranty Inc.