The Morgan Group Inc., Elkhart, Ind., announced on Oct. 4 it intended to file for bankruptcy soon because it was unable to secure new liability insurance coverage.
The company announced on Oct. 3 it had suspended operations of its RV transporting subsidiary, Morgan Drive Away Inc., and its TDI Inc. vehicle delivery business.
Morgan’s liability insurance expired on Oct. 3, and the company was unable to secure a replacement policy. The company is required by federal law to cease operating motor vehicles without required minimum levels of liability insurance.
Morgan, an American Stock Exchange-listed company, said it planned to file a bankruptcy petition within a few days.
Morgan executives said the firm will “pursue a Chapter 11 liquidation of all assets and liabilities.”