Triad Guaranty Inc. Announces Filing of Administrative Order and
Complaint for Rehabilitation for Triad Guaranty Insurance
Corporation
WINSTON-SALEM, N.C.,
Dec. 11, 2012 /PRNewswire/
-- Triad Guaranty Inc. (OTCBB: TGIC) today announced that the
Illinois Department of Insurance (the "Department") has issued an
Administrative Order recommending that Triad Guaranty Insurance
Corporation ("Triad") be placed in rehabilitation.
Additionally, the Department is expected to file today a Complaint
for Rehabilitation with the Circuit Court of Cook County, Illinois seeking an Order of
Rehabilitation. The Board of Directors of Triad has consented
to the Order of Rehabilitation and it is expected to be entered by
the Court in the near future.
Upon entry of the Order of Rehabilitation by the Court, the
Director of the Illinois Department of Insurance will be vested
with possession and control over all of the assets and liabilities
of Triad and Triad Guaranty Inc. will cease to have any oversight
or management authority over Triad or its business and
affairs.
In a related matter, on December 10,
2012, the Department approved reimbursement by Triad of
expenses totaling $734,000 incurred
by Triad Guaranty Inc. on behalf of Triad. As a result of the
Order of Rehabilitation, Triad Guaranty Inc. does not expect to
receive any further reimbursement of expenses or other funds from
Triad.
As discussed in Triad Guaranty Inc.'s Quarterly Report on Form
10-Q filed on November 14, 2012, this
action by the Department to place Triad in rehabilitation will
negatively impact Triad Guaranty Inc.'s ability to fund its
operations in the future. Triad Guaranty Inc. expects that
this action will likely lead it to commence winding up its business
and liquidating through a Chapter 11 bankruptcy proceeding or other
liquidation proceedings, although the timing of the institution of
such a proceeding has not been
determined.
For more information, please visit the Company's web site
at www.triadguaranty.com.
Certain of the statements contained in this release are
"forward-looking statements" and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements include estimates and assumptions
related to economic, competitive, regulatory, operational and
legislative developments. These forward-looking statements
are subject to change, uncertainty and circumstances that are, in
many instances, beyond our control and they have been made based
upon our current expectations and beliefs concerning future
developments and their potential effect on us. Actual
developments and their results could differ materially from those
expected by us, depending on the outcome of a number of factors,
including: our ability to continue as a going concern and various
other factors described under "Risk Factors" and in the "Safe
Harbor Statement under the Private Securities Litigation Reform Act
of 1995" in our Annual Report on Form 10-K for the year ended
December 31, 2011 and in other
reports and statements filed with the Securities and Exchange
Commission. Forward-looking statements are based upon our
current expectations and beliefs concerning future events and we
undertake no obligation to update or revise any forward-looking
statements to reflect the impact of circumstances or events that
arise after the date the forward-looking statements are made,
except as otherwise required by law.
SOURCE Triad Guaranty Inc.
