Failed Mortgage Insurer Deregistering Shares
Triad Guaranty Inc. is looking to deregister its common stock, meaning it will no longer have to file 10-K, 10-Q and 8-K reports, among other things, with the Securities and Exchange Commission.
The company at the start of the current fiscal year has less than 300 owners of its common stock. The accounting, administrative and legal cost savings from deregistration, Triad added, outweigh any benefits of continued registration.
On Dec. 11, 2012, its mortgage insurance subsidiary Triad Guaranty Insurance Corp. was placed into rehabilitation by the Illinois Department of Insurance. This left the parent company with no significant operating activities and limited cash and other assets on hand.
Still, it plans to explore various strategic alternatives, and “in the absence of an acceptable option,” dissolve through a bankruptcy filing.
Meanwhile, Triad’s common stock will continue to trade on the OTC Pink tier as long as market makers express an interest. However, there is no guarantee the stock will continue to trade on this or any other exchange.
Ken Jones, who had been president and CEO of both Triad and TGIC, was terminated at the start of the year from TGIC and resigned his positions at the parent company. The new president and CEO of Triad is William T. Ratliff III and the company will now be headquartered in Birmingham, Ala.
TGIC was the first private mortgage insurer to enter run-off because of the mortgage crisis and the large amount of claims which resulted. Since then, PMI and Republic Mortgage Insurance Co. have also entered into run-off.