RYE, New York, October 4, 2002 – Morgan Group Holding Co. (OTC:MGHL) announced today that The Morgan Group, Inc. (AMEX: MG) issued a press release today reporting that The Morgan Group, Inc.’s Board of Directors passed a resolution for The Morgan Group, Inc. and two of its operating subsidiaries to file for bankruptcy protection within the next few days.
The press release stated that The Morgan Group, Inc. and two of its wholly-owned operating subsidiaries, Morgan Drive Away, Inc. and TDI, Inc., intend to pursue a Chapter 11 liquidation of all assets and liabilities.
The Morgan Group, Inc.’s liability insurance expired at 12:01 a.m. on October 3, 2002 and it has been unable to secure replacement liability insurance. The Morgan Group, Inc. is required by federal law to cease operating motor vehicles without required minimum levels of liability insurance.
MGHL is a holding company that consolidates financial statements with The Morgan Group, Inc., in which MGHL has a 64.2% ownership interest and a 77.6% voting interest.
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Contact: Robert E. Dolan
Chief Financial Officer
Vice President of Corporate Development