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.
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