Of all the decisions Robert W. Truland, chief executive of bankrupt Truland Group, and Truland's main surety, XL Specialty Insurance Co., made during the company's growth spurt, none may have been so wise as when XL, Truland and his wife, Mary, altered the terms of a surety agreement 20 months ago. In the change, the Trulands and XL agreed that the couple's $1.2-million home in Germantown, Md., was off-limits as collateral. Assets Robert co-owned with or gave to Mary and all of Robert's assets, however, would back the bonds.
Just eight months later, news broke about arc-flash problems at the National Security Agency's new federal data center in Camp Williams, Utah. Truland Group, a major electrical contractor, had a $71-million subcontract. It remains to be seen whether this problem project alone caused Truland to shut its doors with no notice on July 31.