EX-99.1 2 v54147exv99w1.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:
      CHAPTER 11 (BUSINESS)        
 
                
Fremont General Corporation
      Case Number:   8:08-bk-13421
 
      Operating Report Number:   16
 
  Debtor   For the Month Ending:   30-Sep-09
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT — MASTER DEMAND ACCOUNT)
                 
1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS (1)
             24,707,908  
 
              
 
                
2. LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
             24,704,739  
 
              
 
                
3. BEGINNING BALANCE:
             3,170  
 
              
 
                
4. RECEIPTS DURING CURRENT PERIOD:
                
     Accounts Receivable — Post-filing
     —          
 
              
     Accounts Receivable — Pre-filing
     —          
 
              
     General Sales
     —          
 
              
     Other (Specify)      Transfers from Money Market Acct
     764,000          
 
              
 
                
     TOTAL RECEIPTS THIS PERIOD:
             764,000  
 
              
 
                
5. BALANCE:
             767,170  
 
              
 
                
6. LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD        
     Transfers to Other DIP Accounts (from page 2)
             —  
 
              
     Disbursements (from page 2)
             764,574  
 
              
 
                
 
              
7. ENDING BALANCE:
             2,595  
 
              
     
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.

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
9/2/2009
  wire   Bowne of Los Angeles Inc   A/P vendor payments       $ 820     $ 820  
9/2/2009
  wire   Barney Northcote   Director Fees         5,833       5,833  
9/2/2009
  wire   John Charles Loring   Director Fees         5,833       5,833  
9/2/2009
  wire   David S. Depillo   Director Fees         5,833       5,833  
9/2/2009
  wire   Robert Shackleton   Director Fees         5,833       5,833  
9/2/2009
  wire   Mark Schaffer   Director Fees         5,833       5,833  
9/2/2009
  wire   Epstein, Becker, & Green P.C.   Professional fees         10,373       10,373  
9/2/2009
  wire   KPMG Corporate Finance LLC   Professional fees         25,086       25,086  
9/2/2009
  wire   FTI Consulting   Professional fees         71,057       71,057  
9/2/2009
  wire   Patton Boggs LLP   Professional fees         103,788       103,788  
9/2/2009
  6000000460   LA Fine Arts   A/P vendor payments         330       330  
9/2/2009
  6000000461   Stephen H. Gordon   Director Fees         5,833       5,833  
9/9/2009
  wire   Solon Group, Inc.   Professional fees         5,252       5,252  
9/9/2009
  wire   Bocarsly Emden Cowan   Professional fees         7,141       7,141  
9/9/2009
  6000000462   Iron Mountain Records Mgmt Inc   A/P vendor payments         861       861  
9/9/2009
  6000000463   Mellon Investor Services LLC   A/P vendor payments         2,824       2,824  
9/16/2009
  wire   Bowne of Los Angeles Inc   A/P vendor payments         985       985  
9/16/2009
  wire   Kurtzman Carson Consultants   Professional fees         10,586       10,586  
9/16/2009
  wire   Ernst & Young   Professional fees         38,800       38,800  
9/16/2009
  wire   Klee, Tuchin, Bogdanoff & Stern LLP   Professional fees         163,121       163,121  
9/16/2009
  6000000464   Bloomberg   A/P vendor payments         627       627  
9/16/2009
  6000000465   Iron Mountain Records Mgmt Inc   A/P vendor payments         5,355       5,355  
9/16/2009
  6000000466   West Payment Center   A/P vendor payments         3,656       3,656  
9/21/2009
  wire   Wells Fargo   Client Analysis
Service Charge 		        2,991       2,991  
9/23/2009
  wire   Bowne of Los Angeles Inc   A/P vendor payments         610       610  
9/23/2009
  wire   Bocarsly Emden Cowan   Professional fees         2,250       2,250  
9/23/2009
  wire   Weiland, Golden, Smiley, Wang, Ekvall, and Strok LLP   Professional fees         92,000       92,000  
9/23/2009
  wire   Stutman, Treister, and Glatt PC   Professional fees         135,565       135,565  
9/23/2009
  6000000467   Iron Mountain Records Mgmt Inc   A/P vendor payments         400       400  
9/23/2009
  6000000468   William M. Stern   OEC Member — Travel Expense Reimbursement         1,451       1,451  
9/30/2009
  wire   Solon Group, Inc.   Professional fees         38,363       38,363  
9/30/2009
  6000000469   Mellon Investor Services LLC   A/P vendor payments         5,283       5,283  
 
                              —
 
                                    
 
                              —
 
              TOTAL DISBURSEMENTS
THIS PERIOD: 		  $         —   $   764,574     $ 764,574  
                       
 
*   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.

Page 2 of 14

 

GENERAL ACCOUNT
BANK RECONCILIATION
                                 
 
   Bank statement Date:     9/30/2009     Balance on Statement:     $ 11,330  
 
                              
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          
 
                          
 
     6000000468       9/23/2009       1,451          
 
                          
 
     6000000469       9/30/2009       5,283          
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                          
 
                                
 
                                
TOTAL OUTSTANDING CHECKS:
                   $ 8,734  
 
                              
 
                                
Bank statement Adjustments:
                        
 
                              
Explanation of Adjustments-
                        
ADJUSTED BANK BALANCE:
                   $ 2,595  
 
                              

Page 3 of 14

 

I. CASH RECEIPTS AND DISBURSEMENTS
B. (COMMERCIAL MONEY MARKET ACCOUNT)
                     
1.
   TOTAL RECEIPTS PER ALL PRIOR REPORTS             38,131,160  
 
                  
 
                    
2.
   LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR REPORTS     10,785,363  
 
                  
 
                    
3.
   BEGINNING BALANCE:             27,345,796  
 
                  
 
                    
4.
   RECEIPTS DURING CURRENT PERIOD:                
 
   Transferred from General Account     —          
 
                  
 
   Interest Income     2,655          
 
                  
 
                    
 
   TOTAL RECEIPTS THIS PERIOD:             2,655  
 
                  
 
                    
5.
   BALANCE:             27,348,451  
 
                  
 
                    
6.
   LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD          
 
   Transfers to Other DIP Accounts (from page 5)             764,000  
 
                  
 
   Disbursements (from page 5)             3,370  
 
                  
 
                    
7.
   ENDING BALANCE:             26,581,081  
 
                  
 
                    
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  
 
              

Page 4 of 14

 

     TOTAL DISBURSEMENTS FROM COMMERCIAL MONEY MARKET ACCOUNT FOR CURRENT PERIOD
                                     
Date
mm/dd/yyyy		   Check
Number		   Payee   Purpose   *Amount
Transferred		     **Amount
Disbursed		     Amount  
9/2/2009
   wire   Fremont General Corporation   Bank account transfer   $ 246,000             $ 246,000  
9/9/2009
   wire   Fremont General Corporation   Bank account transfer     16,000               16,000  
9/16/2009
   wire   Fremont General Corporation   Bank account transfer     223,000               223,000  
9/21/2009
   wire   Wells Fargo   Client Analysis Service Charge             3,370       3,370  
9/23/2009
   wire   Fremont General Corporation   Bank account transfer     236,000               236,000  
9/30/2009
   wire   Fremont General Corporation   Bank account transfer     43,000             $ 43,000  
 
                                    
 
           TOTAL DISBURSEMENTS THIS PERIOD:   $ 764,000     $ 3,370     $ 767,370  
 
                              
 
*   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.

Page 5 of 14

 

COMMERCIAL MONEY MARKET ACCOUNT
BANK RECONCILIATION
                     
 
   Bank statement Date:   9/30/2009   Balance on Statement:   $ 26,581,081  
 
                
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:
               $ 26,581,081  
 
                  
 
*   It is acceptable to replace this form with a similar form
     
**   Please attach a detailed explanation of any bank statement adjustment

Page 6 of 14

 

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS
                                 
    Frequency of             Post-Petition payments        
Creditor, Lessor, Etc.   Payments (Mo/Qtr)     Amount of Payment     not made (Number)     Total Due  
 
                        
—
    
—
      
—
      
—
      
—
  
 
                   TOTAL DUE:     —  
III. TAX LIABILITIES
FOR THE REPORTING PERIOD:                                          September 30, 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:
  —   —    
 
           

Page 7 of 14

 

I. D SUMMARY SCHEDULE OF CASH
ENDING BALANCES FOR THE PERIOD: 9/30/2009
          (Provide a copy of monthly account statements for each of the below)
                         
 
   General Account:       2,595        
 
                    
 
   Money Market Account:       26,581,081        
 
                    
 
   Payroll Account:  (1)       N/A        
 
                    
 
                        
Other Accounts:
                        
                 
 
                        
                 
 
                        
                 
Other Monies:
                        
                 
 
   Petty Cash (from below):       —        
 
                    
 
                        
 
                      
TOTAL CASH AVAILABLE:
                     26,583,676  
 
                      
 
Petty Cash Transactions: 
 
Date   Purpose   Amount        
                 
 
                        
                 
 
                        
                 
 
                        
                 
 
                        
                 
 
                        
                 
 
                        
                 
 
                        
                 
 
                        
                 
 
                        
 
                      
TOTAL PETTY CASH TRANSACTIONS:     N/A       —  
 
                      
 
(1)   The Debtor’s payroll account has been closed.

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
     41,318       —       —  
31 — 60 days
     —       —       —  
61 — 90 days
     —               —  
91 — 120 days
     —               —  
Over 120 days
     6,273       118,819          
 
                  
TOTAL:
     47,591       118,819       —  
 
                  
V. INSURANCE COVERAGE
                     
                Policy Expiration   Premium Paid
Name of Carrier   Insurance Type   Amount of Coverage   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

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       —  
September 30, 2009
     2,677,616       9,750               —       9,750  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                              
 
             45,501               35,751       9,750  
 
                                  

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  

Page 11 of 14

 

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
                 
    Current Month     Cumulative Post-Petition  
    9/30/09     6/19/08-9/30/09  
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       2,041,454  
 
            
Compensation- group insurance
             —  
 
              
Compensation- 401(k)/ESOP/Incentive
     629       (1,706,334 )
 
            
Occupancy
     1,191       508,926  
 
            
Payroll Taxes
             —  
 
              
Other Taxes (Itemize)
             —  
 
              
Information systems
     5,755       39,722  
 
            
Advertising and promotion
             23,635  
 
              
Telecom
             (115 )
 
              
Travel
             2,670  
 
              
Printing and supplies
     1,595       30,892  
 
            
Postage
             (29,156 )
 
              
All other
     50,927       353,036  
 
            
Depreciation and Amortization
     287       22,405  
 
            
Rent Expense — Real Property
             —  
 
              
Lease Expense — Personal Property
             —  
 
              
Insurance
     163,260       2,512,397  
 
            
Miscellaneous Operating Expenses (Itemize)
     —       —  
 
            
Total Operating Expenses
     333,793       3,799,532  
 
            
 
                
Net Gain/(Loss) from Operations
     (333,793 )     (3,799,532 )
 
            
 
                
Non-Operating Income:
                
Interest Income
     2,655       225,096  
 
            
Net Gain on Sale of Assets (Itemize)
             —  
 
              
Other — Equity in Earnings of Subsidiaries
     (11,505,232 )     118,283,371  
 
            
Other (Itemize) — SERP
     —       (75,276 )
 
            
Total Non-Operating income
     (11,502,577 )     118,433,191  
 
            
 
                
Non-Operating Expenses:
                
Interest Expense (1)
     23,914       368,276  
 
            
Legal and Professional (Itemize) (2)
     751,933       13,457,459  
 
            
Other (Itemize)
     —       —  
 
            
Total Non-Operating Expenses
     775,847       13,825,735  
 
            
 
                
 
            
NET INCOME/(LOSS)
   $ (12,612,217 )   $ 100,807,924  
 
            
 
Notes:
 
(1)   Represents amortization of capitalized debt issuance costs.
 
(2)   Represents professional fee accruals (estimates) by the Debtor for financial statement (GAAP) purposes.

Page 12 of 14

 

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)
                 
    Current Month End          
ASSETS
                
Current Assets:
                
 
              
Unrestricted Cash
   $ 26,622,039          
 
              
Accounts Receivable
     118,819          
 
              
Intercompany Receivable
     609,039          
 
              
Prepaid Expenses
     2,956,403          
 
              
Other (Itemize) — SERP / EBP Accounts & Other Benefit Accounts
     11,975,708          
 
              
Other (Itemize) — Investment — FG Financing
     3,092,777          
 
              
Total Current Assets
             45,374,785  
 
              
 
                
Property, Plant, and Equipment
     168,996          
 
              
Accumulated Depreciation/Depletion
     (16,635 )        
 
              
Net Property, Plant, and Equipment
             152,361  
 
              
 
                
Other Assets (Net of Amortization):
                
 
              
Other (Itemize) — GSOP Merrill Lynch Acct. xxx-37M01
     14,928          
 
              
Investment in Subsidiary
     402,866,396          
 
              
Total Other Assets
             402,881,324  
 
              
 
                
TOTAL ASSETS
           $ 448,408,470  
 
              
 
                
LIABILITIES
                
Post-petition Liabilities:
                
 
              
Accounts Payable
     47,591          
 
              
Accruals (1)
     2,751,539          
 
              
Taxes Payable
     —          
 
              
Professional fees
     —          
 
              
Accrued Interest Payable
     —          
 
              
Other (2)
     10,299,491          
 
              
Total Post-petition Liabilities
             13,098,621  
 
              
 
                
Pre-petition Liabilities / Liabilities Subject to Compromise:
                
Priority Liabilities
     —          
 
              
Unsecured Liabilities (3)
     378,043,213          
 
              
Total Pre-petition Liabilities
             378,043,213  
 
              
TOTAL LIABILITIES
             391,141,834  
 
              
 
                
EQUITY:
                
Pre-petition Owners’ Equity (4)
     (53,779,013 )        
 
              
Post-petition Profit/(Loss)
     100,807,924          
 
              
Direct Charges to Equity
     10,237,725          
 
              
TOTAL EQUITY
             57,266,636  
 
              
 
                
TOTAL LIABILITIES & EQUITY
           $ 448,408,470  
 
              
 
    Notes:
 
(1)   Includes accruals (estimates) by the Debtor for financial statement presentation (GAAP) purposes.
 
(2)   Includes an accrued post-petition intercompany payable to Fremont Reorganizing Corporation of $9.9 million.
 
(3)   Includes the accruals (estimates) recorded by the Debtor for financial statement presentation (GAAP) purposes, including an accrual for litigation settlements totaling $36.2 million related to the following matters and related proofs of claim: The Bank of New York v. Fremont General Corporation; Enron Creditors Recovery Corp., et al. v. J.P. Morgan Securities, et al.; California Insurance Commissioner v. Rampino, et al.; and California Insurance Commissioner v. Fremont General Corporation, et al. These litigation settlements were approved, pursuant to Federal Rule of Bankruptcy Procedure 9019, by the Bankruptcy Court in 2009, and each settlement resulted in deemed allowed general unsecured claims against the Debtor’s bankruptcy estate in varying amounts.
 
(4)   Reflects the changes in the Pre-petition Liabilities/Liabilities Subject to Compromise, as further described in footnote 3 above.

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, both the Official Committee of Unsecured Creditors and the Official Committee of Equity Holders filed multiple revised and amended versions of their respective competing chapter 11 plans and disclosure statements. The most recent versions of those documents were filed, pursuant to the Bankruptcy Court’s ruling at a hearing on September 17, 2009, on September 30, 2009 [see Docket Nos. 1055-1058 (Creditors Committee’s revised materials), 1060-1062 (Equity Committee’s revised materials) & 1082 (Errata to the Equity Committee’s materials)].        
 
            
4.
  Describe potential future developments which may have a significant impact on the case:        
 
  A further hearing is scheduled for October 14, 2009 regarding the two official committees’ respective disclosure statements and the Creditors Committee’s further modified motion to establish certain plan solicitation and confirmation procedures [see, most recently, Docket Nos. 1092 & 1094]. Depending on the specifics of the Bankruptcy Court’s ruling at that further hearing, the Debtor anticipates that the process of soliciting votes on one or both of the proposed plans will begin in October 2009.        
 
            
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.		        

Page 14 of 14