Reliance Group Holdings Inc. may seek bankruptcy protection in order to restructure its debt. The company, which is experiencing mounting losses, will operate its property/casualty insurance businesses as a run-off company, paying off claims and continuing to seek buyers for most of its insurance lines while not renewing other lines. Reliance recently posted a second-quarter net loss of $504.5 million, compared with a net loss of $156.9 million for the same period 1999. In addition, company shares have lost more than 85 percent of their value during the past two years. A proposed $293-million purchase of Reliance by Leucadia National Corp. fell through in July.
Was this article valuable?
Here are more articles you may enjoy.
Supreme Court Overturns Chevron Rule in Blow to Regulators 
House Collapses Into Flood-Swollen River Near Minnesota Dam Amid Storms 
Coverage Needed: Hundreds of Thousands in SE Now in Flood Zones With New Maps 
Changes at American Coastal Insurance After Florida OIR Action on ‘No-Fly List’ From This Issue
