Seeking court protection from creditors, North Carolina-based mortgage insurance company Triad Guaranty Inc. has reportedly filed for Chapter 11 and may end up being sold or liquidated.
The filing reportedly follows a North Carolina circuit court judge's decision to deny Triad's request for the dismissal of a pending class action lawsuit against the company and two of its officers alleging that it violated federal securities laws.
Triad Guaranty Inc.'s mortgage insurer subsidiary, Triad Guaranty Insurance Corp., was placed into rehabilitation earlier this year. As a result, the Illinois Department of Insurance was vested with possession and control over all of the company's assets and operations.
As of Tuesday, the company and its attorneys had not yet decided whether to appeal the decision denying the motion to dismiss the pending class action lawsuit.
In January, Triad de-registered its common stock under the Securities Exchange Act of 1934 and ceased filing periodic reports with the SEC.