News for 'TGIC' - (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 via COMTEX/ -- Triad Guaranty
Inc. (OTCBB: TGIC) today announced that the Illinois Department o! f 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 I! nc. 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 th! e 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.
www.prnewswire.com
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