EX-99.1 2 v53780exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:
Fremont General Corporation
Debtor

CHAPTER 11 (BUSINESS)
         
 
Case Number:
  8:08-bk-13421
 
       
Operating Report Number:
    15
 
       
For the Month Ending:
  31-Aug-09


I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT — MASTER DEMAND ACCOUNT)
                 
1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS (1)
   23,714,908  
 
              
 
                
2. LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
     23,711,480  
 
              
 
                
3. BEGINNING BALANCE:
             3,428  
 
              
 
                
4. RECEIPTS DURING CURRENT PERIOD:
                
Accounts Receivable — Post-filing
     —          
 
                
Accounts Receivable — Pre-filing
     —          
 
                
General Sales
     —          
 
                
Other (Specify) Transfers from Money Market Acct
     993,000          
 
                
TOTAL RECEIPTS THIS PERIOD:
   993,000  
 
              
 
                
5. BALANCE:
             996,428  
 
              
 
                
6. LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD
        
Transfers to Other DIP Accounts (from page 2)
             —  
 
              
Disbursements (from page 2)
             993,259  
 
              
 
                
7. ENDING BALANCE:
             3,170  
 
              
 
                
8. General Account Number(s):
 Well Fargo # xxxxxx1638 (2)
       
   
Depository Name & Location:
 Wells Fargo Bank — Pasadena Commercial Banking
  350 W. Colorado Blvd, Suite 210, Pasadena, CA 91105
Notes
 
(1)   Receipts reflected in Master Demand Account include collections prior to the petition date.
 
(2)   Where indicated by an “x” throughout the MOR, the applicable digit has been hidden to prevent theft or other unauthorized access to the account. The information will be available to parties in interest upon reasonable request.
IA

Page 1 of 14

 

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD
                                     
Date   Check           *Amount     **Amount        
mm/dd/yyyy   Number   Payee or DIP account   Purpose   Transferred     Disbursed     Amount  
8/5/2009
   wire   David S. Depillo   Director Fees           $ 5,833     $ 5,833  
8/5/2009
   wire   Robert Shackleton   Director Fees             5,833       5,833  
8/5/2009
   wire   John Charles Loring   Director Fees             5,833       5,833  
8/5/2009
   wire   Mark Schaffer   Director Fees             5,833       5,833  
8/5/2009
   wire   Barney Northcote   Director Fees             5,833       5,833  
8/5/2009
   wire   Kurtzman Carson Consultants   Professional fees             9,568       9,568  
8/5/2009
   wire   Bocarsly Emden Cowan   Professional fees             15,717       15,717  
8/5/2009
   wire   KPMG Corporate Finance LLC   Professional fees             25,000       25,000  
8/5/2009
   6000000453   LA Fine Arts   A/P vendor payments             330       330  
8/5/2009
   6000000454   Mellon Investor Services LLC   A/P vendor payments             2,931       2,931  
8/5/2009
   6000000455   Merrill Lynch Pierce Fenner and Smith Inc.   A/P vendor payments             5,750       5,750  
8/5/2009
   6000000456   Stephen H. Gordon   Director Fees             5,833       5,833  
8/12/2009
   wire   Bowne of Los Angeles Inc   A/P vendor payments             460       460  
8/12/2009
   wire   Epstein, Becker, & Green P.C.   Professional fees             3,214       3,214  
8/12/2009
   wire   Thomson Financial   A/P vendor payments             8,052       8,052  
8/12/2009
   wire   FTI Consulting   Professional fees             105,445       105,445  
8/12/2009
   wire   Patton Boggs LLP   Professional fees             118,685       118,685  
8/19/2009
   wire   Shareholder.com   A/P vendor payments             885       885  
8/19/2009
   wire   Stutman, Treister, and Glatt PC   Professional fees             2,321       2,321  
8/19/2009
   wire   Solon Group, Inc.   Professional fees             2,613       2,613  
8/19/2009
   wire   Caldwell Law Firm   Professional fees             3,502       3,502  
8/19/2009
   wire   CRG Partners Group LLC   Professional fees             4,073       4,073  
8/19/2009
   wire   Willenken Wilson Loh and Lieb LLP   Professional fees             5,360       5,360  
8/19/2009
   wire   Weiland, Golden, Smiley, Wang, Ekvall, and Strok LLP   Professional fees             85,062       85,062  
8/19/2009
   wire   Epstein, Becker, & Green P.C.   Professional fees             123,944       123,944  
8/19/2009
   wire   Klee, Tuchin, Bogdanoff & Stern LLP   Professional fees             201,980       201,980  
8/20/2009
   wire   Wells Fargo   Client Analysis Service Charge             2,769       2,769  
8/26/2009
   wire   Caldwell Law Firm   Professional fees             14,184       14,184  
8/26/2009
   wire   CRG Partners Group LLC   Professional fees             20,026       20,026  
8/26/2009
   wire   Stutman, Treister, and Glatt PC   Professional fees             191,817       191,817  
8/26/2009
   6000000457   Environetics   A/P vendor payments             19       19  
8/26/2009
   6000000458   Iron Mountain Records Mgmt Inc   A/P vendor payments             875       875  
8/26/2009
   6000000459   West Payment Center   A/P vendor payments             3,676       3,676  
 
                                 —  
 
                        
 
          
TOTAL DISBURSEMENTS THIS PERIOD:
   $ —     $ 993,259     $ 993,259  
 
                              
 
*   Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
 
**   Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.
IA p2

Page 2 of 14

 

GENERAL ACCOUNT
BANK RECONCILIATION
                         
Bank statement Date: 8/31/2009
         Balance on Statement:   $ 11,897  
 
                    
                                 
Plus deposits in transit (a):                        
 
                                
 
           Deposit Date   Deposit Amount        
 
                        
 
                                
 
                            
 
                                
 
                            
 
                                
 
                            
 
                                
 
                            
TOTAL DEPOSITS IN TRANSIT                   $ —  
 
                              
 
                                
Less Outstanding Checks (a):                        
                                 
 
   Check Number   Check Date   Check Amount        
 
                    
 
     6000000451       7/29/2009       2,000          
 
     6000000456       8/5/2009       5,833          
 
     6000000457       8/26/2009       19          
 
     6000000458       8/26/2009       875          
 
                                
TOTAL OUTSTANDING CHECKS:                   $ 8,727  
 
                              
 
Bank statement Adjustments:                        
 
                              
Explanation of Adjustments-                        
         
   
   
 
                                
ADJUSTED BANK BALANCE:                   $ 3,170  
 
                              
IA p3

Page 3 of 14

 

I. CASH RECEIPTS AND DISBURSEMENTS
B. (COMMERCIAL MONEY MARKET ACCOUNT)
                 
1. TOTAL RECEIPTS PER ALL PRIOR REPORTS
             38,128,319  
 
 
              
2. LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR REPORTS
             9,788,989  
 
              
 
3. BEGINNING BALANCE:
             28,339,328  
 
              
 
4. RECEIPTS DURING CURRENT PERIOD:
                
Transferred from General Account
     —          
 
              
Interest Income
     2,841          
 
              
 
TOTAL RECEIPTS THIS PERIOD:
             2,841  
 
              
 
5. BALANCE:
             28,342,169  
 
              
 
6. LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD
                
Transfers to Other DIP Accounts (from page 5)
             993,000  
 
              
Disbursements (from page 5)
             3,374  
 
              
 
7. ENDING BALANCE:
             27,345,796  
 
              
 
8. COMMERCIAL MONEY MARKET ACCOUNT Number(s): xxxxxx8097
                
 
                
     
Depository Name & Location:
 Wells Fargo Bank — Pasadena Commercial Banking
  350 W. Colorado Blvd, Suite 210, Pasadena, CA 91105
IB

Page 4 of 14

 

TOTAL DISBURSEMENTS FROM COMMERCIAL MONEY MARKET ACCOUNT FOR CURRENT PERIOD
                                     
Date   Check           *Amount     **Amount        
mm/dd/yyyy   Number   Payee   Purpose   Transferred     Disbursed     Amount  
 
8/5/2009   wire   Fremont General Corporation  
Bank account transfer
  $ 94,000             $ 94,000  
8/12/2009   wire   Fremont General Corporation  
Bank account transfer
    236,000               236,000  
8/19/2009   wire   Fremont General Corporation  
Bank account transfer
    429,000               429,000  
8/20/2009   wire   Wells Fargo  
Client Analysis Service Charge
            3,374       3,374  
8/26/2009   wire   Fremont General Corporation  
Bank account transfer
    234,000               234,000  
                             
           
TOTAL DISBURSEMENTS THIS PERIOD:
  $ 993,000     $ 3,374     $ 996,374  
                             
 
*   Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
 
**   Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.
IB p2

Page 5 of 14

 

COMMERCIAL MONEY MARKET ACCOUNT
BANK RECONCILIATION
                                 
Bank statement Date: 8/31/2009       Balance on Statement:      $ 27,345,796  
 
Plus deposits in transit (a):
                                
 
 
           Deposit Date   Deposit Amount        
 
                                
                               
 
                                
                               
 
                                
                               
 
                                
                               
 
                                
                               
 
                                
                               
TOTAL DEPOSITS IN TRANSIT
                             0  
 
                              
Less Outstanding Checks (a):
                                
 
   Check Number   Check Date   Check Amount        
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
 
                                
 
                    
TOTAL OUTSTANDING CHECKS:
                             0  
 
                              
 
                                
Bank statement Adjustments:
                              
Explanation of Adjustments-
                                
         
   
   
 
                                
ADJUSTED BANK BALANCE:
                           $ 27,345,796  
 
                              
 
*   It is acceptable to replace this form with a similar form
 
**   Please attach a detailed explanation of any bank statement adjustment
IB p3

Page 6 of 14

 

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS
                                 
    Frequency of Payments           Post-Petition payments    
Creditor, Lessor, Etc.   (Mo/Qtr)   Amount of Payment   not made (Number)   Total Due
—     —       —       —        —  
 
                                
 
                   TOTAL DUE:      —  
 
                                
III. TAX LIABILITIES
FOR THE REPORTING PERIOD: August 31, 2009
         
Gross Sales Subject to Sales Tax:
      —  
 
        
Total Wages Paid:
      —  
 
        
                             
        Total Post-Petition             Date Delinquent
        Amounts Owing     Amount Delinquent     Amount Due
 
   Federal Withholding     —       —       N/A  
 
   State Withholding     —       —       N/A  
 
   FICA- Employer’s Share     —       —       N/A  
 
   FICA- Employee’s Share     —       —       N/A  
 
   Federal Unemployment     —       —       N/A  
 
   Sales and Use     —       —       N/A  
 
   Real Property     —       —       N/A  
Other:
                            
 
                        
 
   TOTAL:     —       —          
 
                        
II - III

Page 7 of 14

 

I. D SUMMARY SCHEDULE OF CASH
ENDING BALANCES FOR THE PERIOD: 8/31/2009
(Provide a copy of monthly account statements for each of the below)
                     
 
   General Account:     3,170          
 
                  
 
   Money Market Account:     27,345,796          
 
                  
 
   Payroll Account: (1)     N/A          
 
                  
 
                    
Other Accounts:
                    
 
                  
 
                    
 
                  
 
                    
 
                  
Other Monies:
                    
 
                  
 
   Petty Cash (from below):     —          
 
                  
 
                    
TOTAL CASH AVAILABLE:
             27,348,966  
 
                  
Petty Cash Transactions:
                     
Date   Purpose   Amount          
 
                    
 
                    
 
                  
 
                    
 
                  
 
                    
 
                  
 
                    
 
                  
 
                    
 
                  
 
                    
 
                  
 
                    
 
                  
 
                    
 
                  
 
                    
 
                  
 
                    
TOTAL PETTY CASH TRANSACTIONS:
     N/A       —  
 
                  
 
(1)   The Debtor’s payroll account has been closed.
ID

Page 8 of 14

 

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE
                         
    Accounts Payable   Accounts Receivable
    Post-Petition   Pre-Petition   Post-Petition
30 days or less
     1,150       —        —  
31 - 60 days
     —       —        —  
61 - 90 days
     —                —  
91 - 120 days
     —                —  
Over 120 days
     6,273       118,819          
 
                        
TOTAL:
     7,423       118,819        —  
 
                        
V. INSURANCE COVERAGE
                     
                    Premium Paid
Name of Carrier   Insurance Type   Amount of Coverage   Policy Expiration Date   Through (Date)
XL Specialty
   Directors & Officers     15,000,000     4/01/09-10/01/09   10/1/09
Continental Casualty
   Excess D&O     15,000,000     4/01/09-10/01/09   10/1/09
U.S. Specialty
   Excess D&O     15,000,000     4/01/09-10/01/09   10/1/09
RSUI Indemnity
   Excess D&O     15,000,000     4/01/09-10/01/09   10/1/09
Allied World Natl
   Excess D&O     10,000,000     4/01/09-10/01/09   10/1/09
U.S. Specialty
   Excess D&O     10,000,000     4/01/09-10/01/09   10/1/09
Liberty Mutual
   Excess D&O     10,000,000     4/01/09-10/01/09   10/1/09
Navigators Ins.
   Excess D&O     10,000,000     4/01/09-10/01/09   10/1/09
Westchester Surplus
   Excess D&O     10,000,000     4/01/09-10/01/09   10/1/09
Platte River
   Excess D&O     10,000,000     4/01/09-10/01/09   10/1/09
Scottsdale Ins.
   Excess D&O     5,000,000     4/01/09-10/01/09   10/1/09
XL Specialty
   Run-off D&O     20,000,000     1/01/07-1/01/14   1/1/14
Continental Casualty
   Run-off D&O     15,000,000     1/01/07-1/01/14   1/1/14
RSUI Indemnity
   Run-off D&O     15,000,000     1/01/07-1/01/14   1/1/14
New Mkts Undrwrtr
   Run-off D&O     10,000,000     1/01/07-1/01/14   1/1/14
Platte River
   Run-off D&O     10,000,000     1/01/07-1/01/14   1/1/14
St. Paul Mercury
   Run-off D&O     10,000,000     1/01/07-1/01/14   1/1/14
Federal Insurance
   Run-off D&O     10,000,000     1/01/07-1/01/14   1/1/14
Liberty Mutual
   Run-off D&O     10,000,000     1/01/07-1/01/14   1/1/14
Columbia Casualty
   Fiduciary Liability     10,000,000     4/01/09-10/01/09   10/1/09
XL Specialty
   Excess Fiduciary Liability     10,000,000     4/01/09-10/01/09   10/1/09
U.S. Specialty
   Excess Fiduciary Liability     10,000,000     4/01/09-10/01/09   10/1/09
Navigators Ins.
   Excess Fiduciary Liability     10,000,000     4/01/09-10/01/09   10/1/09
Allied World Natl
   Excess Fiduciary Liability     5,000,000     4/01/09-10/01/09   10/1/09
Westchester Surplus
   Excess Fiduciary Liability     5,000,000     4/01/09-10/01/09   10/1/09
XL Specialty
   Run-off Fiduciary     15,000,000     1/01/07-1/01/14   1/1/14
Capital Indemnity
   Run-off Fiduciary     10,000,000     1/01/07-1/01/14   1/1/14
Federal Insurance
   Run-off Fiduciary     10,000,000     1/01/07-1/01/14   1/1/14
Houston Casualty
   Run-off Fiduciary     5,000,000     1/01/07-1/01/14   1/1/14
National Union Fire
   Crime Coverage     15,000,000     4/01/09-1/01/10   1/1/10
Zurich American
   Excess Crime Coverage     15,000,000     4/01/09-1/01/10   1/1/10
Continental Ins.
   Excess Crime Coverage     10,000,000     4/01/09-1/01/10   1/1/10
Federal Insurance
   Errors & Omissions     5,000,000     4/01/09-10/01/09   10/1/09
U.S. Specialty
   Excess E&O     5,000,000     4/01/09-10/01/09   10/1/09
Federal Insurance
   Commercial Automobile     1,000,000     1/01/09-1/01/10   1/1/10
Federal Insurance
   Commercial Excess and Umbrella     5,000,000     1/01/09-1/01/10   1/1/10
Great American
   Excess Umbrella     20,000,000     1/01/09-1/01/10   1/1/10
Federal Insurance
   Commercial Package     14,499,247     1/01/09-1/01/10   1/1/10
State Compensation Fund of CA
   Workers Compensation     1,000,000     1/01/09-1/01/10   1/1/10
IV, V, VI

Page 9 of 14

 

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)
                                         
    Total Disbursements                           Quarterly Fees
Quarterly Period Ending (Date)   (during Quarter)   Quarterly Fees   Date Paid   Amount Paid   Still Owing
June 30, 2008
     0       325     22-Aug-2008     325       —  
June 30, 2008
     0       1     1-Oct-2008     1         —  
September 30, 2008
     851,493       4,875     19-Nov-2008     4,875       —  
December 31, 2008
     3,817,827       10,400     21-Jan-2009     10,400       —  
March 31, 2009
     3,442,105       10,400     15-Apr-2009     10,400       —  
June 30, 2009
     2,311,647       9,750     15-Jul-2009     9,750       —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                        
 
             35,751               35,751       —  
 
                                        
IV, V, VI

Page 10 of 14

 

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS
                         
    Date of Order             Gross Compensation  
    Authorizing     Authorized Gross     Paid During the  
Name of Insider   Compensation     Compensation     Month  
 
                        
No compensation disbursements made to insiders during the period.
                        
VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS
                 
    Date of Order          
    Authorizing       Amount Paid During  
Name of Insider   Compensation   Description   the Month  
 
Robert Shackleton
   9/29/08   Director fees     5,833  
Mark Schaffer
   9/29/08   Director fees     5,833  
John Charles Loring
   9/29/08   Director fees     5,833  
Barney Northcote
   9/29/08   Director fees     5,833  
David S. Depillo
   9/29/08   Director fees     5,833  
Stephen H. Gordon
   9/29/08   Director fees     5,833  
VII - VIII

Page 11 of 14

 

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
                 
    Current Month     Cumulative Post-Petition  
    8/31/09     6/19/08-8/31/09  
Sales/Revenue:
                
Net Sales/Revenue
   $ —     $ —  
 
            
Cost of Goods Sold:
                
Cost of Goods Sold (COGS)
     —       —  
 
            
Gross Profit
     —       —  
 
            
Other Operating Income (Itemize)
     —       —  
 
            
 
Operating Expenses:
                
Payroll — Insiders
     —       —  
 
            
Compensation — regular (intercompany allocation)
     110,149       1,931,305  
 
            
Compensation — group insurance
             —  
 
            
Compensation- 401(k)/ESOP/Incentive
     629       (1,706,963 )
 
            
Occupancy
     1,205       507,735  
 
            
Payroll Taxes
             —  
 
            
Other Taxes (Itemize)
             —  
 
            
Information systems
             33,967  
 
            
Advertising and promotion
             23,635  
 
            
Telecom
             (115 )
 
            
Travel
             2,670  
 
            
Printing and supplies
     1,280       29,297  
 
            
Postage
             (29,156 )
 
            
All other
     44,818       302,109  
 
            
Depreciation and Amortization
     287       22,118  
 
            
Rent Expense — Real Property
             —  
 
            
Lease Expense — Personal Property
             —  
 
            
Insurance
     162,856       2,349,137  
 
            
Miscellaneous Operating Expenses (Itemize)
     —       —  
 
            
Total Operating Expenses
     321,224       3,465,739  
 
            
Net Gain/(Loss) from Operations
     (321,224 )     (3,465,739 )
 
            
 
Non-Operating Income:
                
Interest Income
     2,841       222,441  
 
            
Net Gain on Sale of Assets (Itemize)
             —  
 
            
Other — Equity in Earnings of Subsidiaries
     (1,354,466 )     129,788,603  
 
            
Other (Itemize) — SERP
     —       (75,276 )
 
            
Total Non-Operating income
     (1,351,625 )     129,935,768  
 
            
 
Non-Operating Expenses:
                
Interest Expense (1)
     23,914       344,362  
 
            
Legal and Professional (Itemize) (2)
     941,428       12,705,526  
 
            
Other (Itemize)
     —       —  
 
            
Total Non-Operating Expenses
     965,342       13,049,888  
 
            
NET INCOME/(LOSS)
   $ (2,638,191 )   $ 113,420,141  
 
            
 
Notes:
 
(1)   Represents amortization of capitalized debt issuance costs.
 
(2)   Represents professional fee accruals (estimates) by the Debtor for financial statement (GAAP) purposes.
IX

Page 12 of 14

 

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)
                 
    Current Month End          
ASSETS
                
 
              
Current Assets:
                
Unrestricted Cash
   $ 27,348,966          
 
              
Accounts Receivable
     118,819          
 
              
Intercompany Receivable
     609,039          
 
              
Prepaid Expenses
     3,128,725          
 
              
Other (Itemize) — SERP / EBP Accounts & Other Benefit Accounts
     11,937,648          
 
              
Other (Itemize) — Investment — FG Financing
     3,092,777          
 
              
Total Current Assets
             46,235,974  
 
              
 
                
Property, Plant, and Equipment
     168,996          
 
              
Accumulated Depreciation/Depletion
     (16,348 )        
 
              
Net Property, Plant, and Equipment
             152,648  
 
              
 
                
Other Assets (Net of Amortization):
                
Other (Itemize) — GSOP Merrill Lynch Acct. xxx-37M01
     14,928          
 
              
Investment in Subsidiary
     414,371,628          
 
              
Total Other Assets
             414,386,556  
 
              
TOTAL ASSETS
           $ 460,775,178  
 
              
 
                
LIABILITIES
                
Post-petition Liabilities:
                
Accounts Payable
     7,423          
 
              
Accruals (1)
     2,719,661          
 
              
Taxes Payable
     —          
 
              
Professional fees
     —          
 
              
Accrued Interest Payable
     —          
 
              
Other
     10,164,088          
 
              
Total Post-petition Liabilities
             12,891,172  
 
              
 
                
Pre-petition Liabilities / Liabilities Subject to Compromise:
                
Priority Liabilities
     —          
 
              
Unsecured Liabilities (1)
     341,761,457          
 
              
Total Pre-petition Liabilities
             341,761,457  
 
              
TOTAL LIABILITIES
             354,652,629  
 
              
 
                
EQUITY:
                
Pre-petition Owners’ Equity
     (17,535,317 )        
 
              
Post-petition Profit/(Loss)
     113,420,141          
 
              
Direct Charges to Equity
     10,237,725          
 
              
TOTAL EQUITY
             106,122,549  
 
              
TOTAL LIABILITIES & EQUITY
           $ 460,775,178  
 
              
 
Notes:
 
(1)   Includes accruals (estimates) by the Debtor for financial statement presentation (GAAP) purposes.
X

Page 13 of 14

 

XI. QUESTIONNAIRE
             
1.
  Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below:

 
   No
þ 		  Yes
o
 
            
2.
  Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below:

   No
þ 		  Yes
o
 
 
 
        
 
            
3.
  State what progress was made during the reporting period toward filing a plan of reorganization.        
 
            
 
  During the reporting period, the Official Committee of Unsecured Creditors filed a chapter 11 plan and disclosure statement [Docket Nos. 870-871] and the Official Committee of Equity Holders filed a competing amended plan and disclosure statement [Docket Nos. 875-876]. Furthermore, a pro se shareholder and purported creditor filed a “plan” without any disclosure statement [Docket No. 923].        
 
            
4.
  Describe potential future developments which may have a significant impact on the case:        
 
            
 
  A hearing is scheduled for September 17, 2009 regarding the two official committees’ respective disclosure statements and the Creditors Committee’s motion to establish certain solicitation and confirmation procedures [Docket No. 927]. The Debtor understands that one or both committees may file further amended plans and/or disclosure statements prior to or after that hearing.        
 
            
5.
  Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.

 
        
 
            
6.
  Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below.

 
   No
þ 		  Yes
o
 
            
I,
  Thea Stuedli, Chief Financial Officer of Fremont General Corporation
declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.		        
XI

Page 14 of 14