Reliance Bankruptcy Reality

Reliance Group Holdings, Inc. (RGH) announced in a press release that on June 11, RGH and Reliance Financial Services Corporation (RFS), its wholly-owned subsidiary, filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The Company said it elected to file for Chapter 11 relief in order to implement a financial restructuring of the Company. The Company said that it has reached an agreement in principle with holders of the majority of RFS' bank debt, and an ad hoc committee consi...