Insurer Triad Guaranty Files for Bankruptcy Protection
Triad Guaranty Inc. (TGIC), a residential mortgage insurer, sought bankruptcy court protection from creditors, citing losses related to the U.S. economic slowdown, housing crisis and unemployment.
The company, based in Birmingham, Alabama, listed more than $100 million in assets and less than $50,000 in debts in Chapter 11 papers filed yesterday in U.S. Bankruptcy Court in Delaware.
“Continued high unemployment in the U.S. and the slow economic recovery” in residential mortgage and housing markets are reflected in Triad Guaranty’s recent elevated loss ratios, Chief Executive Officer William T. Ratliff III said in court papers.
He said the company hasn’t found an acquisition candidate, and the company said in a statement that it may be liquidated.
Triad fell 51 percent to 19 cents at 10 a.m. in over-the-counter trading in New York.
The case is In re Triad Guaranty Inc., 13-bk-11452, U.S. Bankruptcy Court, District of Delaware (Wilmington).
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