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IN RE RELIANCE GROUP HOLDINGS, INC.

Bankruptcy No. 01-13404. Adversary Nos. 01-558-KJC, 01-559-KJC.

273 B.R. 374 (2002)

In re RELIANCE GROUP HOLDINGS, INC., et al., Debtor. M. Diane Koken, etc., Plaintiff, v. Reliance Group Holdings, Inc., Defendant. M. Diane Koken, etc., Plaintiff, v. Reliance Insurance Company, Defendant.

United States Bankruptcy Court, E.D. Pennsylvania.

February 22, 2002.

Attorney(s) appearing for the Case

Hillary C. Steinberg, James M. Matour, Philadelphia, PA, Lorna Schofield, Steven Gross, Carl Micarelli, Leigh Schachter, DeBevoise & Plimpton, New York City, for Debtor.

Lawrence J. Tabas, Philadelphia, PA, Daniel Wheeler, Ann Laupheimer, Blank, Rome, Comisky & McCauley, Philadelphia, PA, for Plaintiff.

Barbara Moses, Laurie Dix, Arnold Culkowitz, Thomas Kent, Orrick, Herrington & Sutcliffe, New York City, for Unofficial Unsecured Creditors Committee.

OPINION

KEVIN J. CAREY, Bankruptcy Judge.

I. BACKGROUND1

A. The Parties.

Reliance Group Holdings, Inc. ("RGH" or the "Debtor") is a Delaware corporation that owns all the stock of Reliance Financial Services Corporation ("Reliance Financial"), which, in turn, owns all the stock of Reliance Insurance Company ("RIC"). RIC is a property and casualty insurer organized under the...

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