Triad Guaranty Inc. Commences Voluntary Chapter 11 Proceeding

BIRMINGHAM, Ala., June 3, 2013 /PRNewswire/ -- Triad Guaranty Inc. (the "Company") (OTC Pink: TGIC) announced today that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Delaware.  The Company also announced today that the Magistrate Judge for the U.S. District Court of the Middle District of North Carolina issued an order denying the Company's motion to dismiss the pending Phillips class action lawsuit against the Company and two of its former officers alleging violations of federal securities laws.  As of today, the Company has not determined whether to appeal this decision and intends to continue to vigorously defend itself in this action.

As previously reported by the Company, on December 11, 2012, the Company's mortgage insurer subsidiary, Triad Guaranty Insurance Corporation ("TGIC"), was placed into rehabilitation, whereby the Illinois Department of Insurance was vested with possession and control over all of TGIC's assets and operations.  As a result, the Company's Board of Directors has concluded that filing for Chapter 11 protection under the Bankruptcy Code is in the best interest of the Company's stakeholders.  The Company expects that this Chapter 11 proceeding will provide it with the opportunity to pursue strategic alternatives to a liquidation.

On January 28, 2013, the Company deregistered its common stock under the Securities Exchange Act of 1934 and ceased filing periodic reports with the SEC.  Following deregistration, the Company's common stock has been quoted on the OTC Pink tier operated by OTC Markets Group, a centralized electronic quotation service for over-the-counter securities.  For more information, Company stockholders may access the Company's website, www.triadguarantyinc.com.

SOURCE Triad Guaranty Inc.

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