Triad Files for Chapter 11

The expected filing of a Chapter 11 Bankruptcy Petition by Triad Guaranty Inc. took place on Monday evening. Triad said it expected to enter bankruptcy proceedings back on Dec. 11, 2012, when its Triad Guaranty Insurance Co. subsidiary was placed into rehabilitation by its regulators in Illinois. It had said then it was not able to determine when it would do so.

In its press release, Triad said a Chapter 11 filing will provide it with the opportunity to pursue strategic alternatives to liquidating the company. The filing was made in the U.S. Bankruptcy Court for the District of Delaware.

Since January, the parent company has been based in Birmingham, Ala., and its stock has been trading on the OTC Pink tier.

In the same press release, Triad disclosed a magistrate judge in the U.S. District Court for the Middle District of North Carolina has denied its motion for dismissal of an amended class action complaint filed by James Phillips. The class would cover people who purchased Triad stock between Oct. 26, 2006 and April 1, 2008.

Also sued were two former Triad executives.

Triad said it has not determined if it would appeal the ruling but it does intent to continue to vigorously defend itself in this case.