Contact Information: For further information please contact: Signature Group Holdings, LLC Craig F. Noell Managing Director Telephone: (805) 435-1255 E-Mail: Website: www.SignatureGroupHoldings.com
Fremont General's Plan Solicitation Packages Are Forthcoming
James A. McIntyre, Sr. Reiterates Support for Signature Plan of Reorganization
| Source: Signature Group Holdings, LLC
SANTA BARBARA, CA--(Marketwire - February 16, 2010) - Plan solicitation packages are heading
out to creditors and shareholders in the matter of Fremont General
Corporation ("Fremont" or the "Company") (PINKSHEETS : FMNTQ ).
James A. McIntyre, Sr. announced that following careful consideration of
all plan of reorganization alternatives he has decided to back the Plan of
Reorganization ("Signature Plan") being put forward by plan proponent
Signature Group Holdings, LLC ("Signature"). Also supporting the Signature
Plan are Seth W. Hamot of Boston based Roark, Reardon, and Hamot, LLC and
Howard Amster of Beachwood, Ohio based Ramat Securities, who are believed
to be the two largest holders of Trust Oriented Preferred Securities or
TOPrS (PINKSHEETS : FMNPQ ). Mssrs. McIntryre, Hamot, and Amster have each
agreed to be co-proponents of the Signature Plan. "I strongly support the
Signature Plan of Reorganization for Fremont General and recommend a "YES"
Vote. In putting together this Signature Plan, I had the opportunity to
work with the senior members of the Signature team and to help guide the
Plan including revisions to the compensation structure and other aspects of
the Plan that protect shareholders," said McIntyre.
Mr. McIntyre explained that the decision to support the Signature Plan was
the result of a deliberative process that began in November when he, Hamot,
and Amster entered into an agreement to support a revised plan negotiated
with the Official Equity Committee. Thereafter, McIntyre, Hamot, Amster,
and the Official Equity Committee proceeded to evaluate potential plan
proponents who would bring a turnkey management team. Said McIntyre, "This
process included an evaluation of the proposals from other proponents, as
well as various meetings, phone calls, and negotiations. At the conclusion
of that process, the large TOPrS and I agreed that Signature presented the
best alternative and proceeded with Signature." McIntyre said he was
disappointed that the OEC had not joined him in supporting the Signature
Plan, "In my view, the Equity Committee erred in not moving forward with
the established team that Signature provides us." McIntyre also expressed
his opinion that "the Equity Committee lacks a viable, committed management
team and also lacks a workable business plan."
The Signature Plan utilizes the asset base of the current Fremont estate as
a foundation for the creation of a broad based, high growth, and solidly
profitable commercial finance platform oriented toward the "middle market"
for corporate lending which is acutely needed under current market
conditions. Signature has an established track record, market presence,
and an experienced and accomplished team that can originate, structure and
manage a diversified portfolio that is expected to include asset-backed
commercial financings, special situations loans, distressed asset
investments. A key to Signature's ability to generate high returns while
avoiding credit losses has been its focus on mitigating risk with borrower
collateral. "I am confident that the path to shareholder value lies in
supporting Signature. They bring to our company a bright, energetic and
dedicated management team -- all with an enviable record in commercial
lending," said McIntyre. In particular, he said that the Signature Plan
emphasizes financial products and services that have proven consistently
profitable through credit cycles, and is "particularly well suited to
maximizing the value of the net operating loss carry-forwards. This will,
in my opinion, result in a robust earnings and cash flow profile, leading
to attractive risk-adjusted returns and solid, long-term value creation for
the Equity Holders."
While Mr. McIntyre indicated that he does not intend to serve on the board
of directors for the reorganized Fremont he noted that Signature's proposed
Board of Directors slate "is impressive and comprised of experienced and
knowledgeable businessmen who are committing their own capital to the
reorganized Fremont." Mr. McIntyre noted that, as part of his process in
evaluating his alternatives, he had met with John Nickoll, the prospective
Chairman under the Signature Plan. Mr. Nickoll formerly founded Foothill
Capital, "a highly successful financial services firm that is now part of
Wells Fargo." McIntyre opined that the Directors identified in the
Signature Plan "will bring further balance, prudent stewardship and
strategic guidance to the Company." Five of the directors, John Nickoll,
Robert Peiser, Larry Hochberg, Seth Hamot, and Howard Amster have
considerable experience serving as Directors of publicly traded companies.
In addition, according to the Disclosure Statement for the Signature Plan,
three of the six directors who have been identified under the Signature
Plan are existing Fremont shareholders while two others, Mr. Hamot and Mr.
Amster, are believed to be the two largest holders of TOPrS. All of the
proposed Directors under the Signature Plan are expected to qualify as
"independent directors" under requirements of the applicable securities
laws and exchange regulations. Mr. McIntyre concluded: "I care deeply
about Fremont General and believe that the Signature Plan is the right way
forward towards a brighter future."
About Jim McIntyre
James A. McIntyre, Sr., joined Alltrades Insurance Co in 1963 as part of a
recapitalization. The Company changed its name to Fremont at that time. He
later served as CEO of the Company from its IPO in 1970 until his
retirement in 2004. He has continued to be an equity holder and, together
with family members, owns 9,786,994 shares representing approximately 12.5%
of the outstanding shares of the company.
About Signature Group Holdings, LLC
Formed in 2004, Signature Group Holdings, LLC is a credit oriented special
situations investor with a track record of successfully acquiring,
originating and managing debt investments. Signature is a Plan Proponent
in the reorganization of Fremont General Corporation. Copies of the
Signature Disclosure Statement, Solicitation Letter, Plan of
Reorganization, and other information about Signature can be found on its
website www.SignatureGroupHoldings.com. Signature is headquartered in
Sherman Oaks, CA.
Cautionary Statements
This news release contains forward-looking information. Statements
contained in this news release relating to future results, events and
expectations are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements may involve known and unknown risks and other factors and
uncertainties which may cause the actual results to be materially different
from those expressed or implied by such statements. The Company does not
have any intention or obligation to update forward-looking statements
included in this press release after the date of this press release, except
as required by law.
No stock exchange or regulatory authority has approved or disapproved of
the information contained herein.