-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MITkrZrsRK5kD73aCexE0gi0TBp5w/0u1cjeHRv2G25S6ueoYM1bgMhOHmHlqA4k ZtpMsAxF00CGdihpnpMAWw== 0000950134-08-015405.txt : 20080818 0000950134-08-015405.hdr.sgml : 20080818 20080818091307 ACCESSION NUMBER: 0000950134-08-015405 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080815 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080818 DATE AS OF CHANGE: 20080818 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FREMONT GENERAL CORP CENTRAL INDEX KEY: 0000038984 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 952815260 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08007 FILM NUMBER: 081024112 BUSINESS ADDRESS: STREET 1: 2425 OLYMPIC BOULEVARD STREET 2: 3RD FLOOR CITY: SANTA MONICA STATE: CA ZIP: 90404 BUSINESS PHONE: 3103155500 MAIL ADDRESS: STREET 1: 2425 OLYMPIC BOULEVARD STREET 2: 3RD FLOOR CITY: SANTA MONICA STATE: CA ZIP: 90404 8-K 1 v43083e8vk.htm FORM 8-K e8vk
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 18, 2008 (August 15, 2008)
FREMONT GENERAL CORPORATION
(Exact Name of Registrant as Specified in Charter)
         
Nevada   001-08007   95-2815260
         
(State or Other Jurisdiction
of Incorporation) 		  (Commission File Number)   (I.R.S. Employer
Identification No.)
         
2727 East Imperial Highway
    
Brea, California
   92821
     
(Address of Principal Executive Offices)
   (Zip Code)
(Registrant’s Telephone Number, Including Area Code) (714) 961-5000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
 
 

 

 

Item 8.01   Other Events.
Filing of Monthly Operating Report for the Month Ended July 31, 2008 with the United States Trustee
On August 15, 2008, Fremont General Corporation (the “Company”) filed its monthly operating report for the month ended July 31, 2008 (the “July Monthly Operating Report”), with the United States Trustee for the Central District of California, Santa Ana Division (the “United States Trustee”).
Before reading the July Monthly Operating Report, we strongly urge you to read the Cautionary Statement Regarding the July Monthly Operating Report below.
The July Monthly Operating Report is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Cautionary Statement Regarding July Monthly Operating Report
The July Monthly Operating Report contains financial information that has not been audited or reviewed by independent registered accountants, is not presented in accordance with generally accepted accounting principles and may be subject to future reconciliation and adjustments. The information contained in the July Monthly Operating Report has been prepared in accordance with applicable law under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) and is not to be used for investment purposes. There can be no assurance that the July Monthly Operating Report is complete. The Company may amend or otherwise change the information contained in the July Monthly Operating Report at a future date. Results set forth in the July Monthly Operating Report should not be viewed as indicative of future results.
The information contained in the July Monthly Operating Report represents financial information of the Company only and does not include financial information for its indirect wholly-owned subsidiary, Fremont Restructuring Corporation (formerly known as “Fremont Investment & Loan”). The July Monthly Operating Report should under no circumstances be relied upon or viewed as a substitute, supplement or replacement for financial information that is filed with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.
Item 9.01   Financial Statements and Exhibits.
(d)   Exhibits.
     
Exhibit    
Number   Description
Exhibit 99.1
  Fremont General Corporation Monthly Operating Report for the month ended July 31, 2008

 

 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  FREMONT GENERAL CORPORATION
 		  
Date: August 18, 2008  By:   /s/ Richard A. Sanchez   
    Name:   Richard A. Sanchez   
    Title:   Executive Vice President and
Chief Administrative Officer 		  
 

 

EX-99.1 2 v43083exv99w1.htm EXHIBIT 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:
  2
 
   
For the Month Ending:
  July 31, 2008


I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT — MASTER DEMAND ACCOUNT)
                 
1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS (1)
             6,281,725  
 
              
 
                
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
             4,000,000  
 
              
 
                
3. BEGINNING BALANCE:
             2,281,725  
 
              
 
                
4. RECEIPTS DURING CURRENT PERIOD:
                
Accounts Receivable — Post-filing
     —          
 
              
Accounts Receivable — Pre-filing
     —          
 
              
General Sales
     —          
 
              
Other (Specify)             Creditor refunds
     56,358          
 
              
Other (Specify)             Intercompany reimbursement (2)
     93,951          
 
              
TOTAL RECEIPTS THIS PERIOD:
             150,309  
 
              
 
    
5. BALANCE:
             2,432,035  
 
              
 
                
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
                
Transfers to Other DIP Accounts (from page 2)
     —          
 
              
Disbursements (from page 2)
     386,407          
 
              
 
                
TOTAL DISBURSEMENTS THIS PERIOD:
             386,407  
 
              
 
                
7. ENDING BALANCE:
             2,045,627  
 
              
 
                
8. General Account Number(s):   Well Fargo # xxxxxx1638 (3)
     
 
                
     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)   Reflects intercompany reimbursements for vendor payments.
 
(3)   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 15

 

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD
                                     
Date   Check           *Amount     **Amount        
mm/dd/yyyy   Number   Payee or DIP account   Purpose   Transfered     Disbursed     Amount  
7/10/2008   wire  
Fremont Investment & Loan
   Intercompany payment for reimbursement of monthly shared services           $ 176,207     $ 176,207  
7/14/2008   6000000314  
Water Garden Co LLC
   A/P vendor payments (office lease)             185,190       185,190  
7/16/2008   6000000316  
Mwb Business Systems
   A/P vendor payments             3,030       3,030  
7/16/2008   6000000315  
ATT Sacramento
   A/P vendor payments             67       67  
7/17/2008   wire 80082  
PR Newswire Association LLC
   A/P vendor payments             1,915       1,915  
7/21/2008   wire  
Wells Fargo
   Client Analysis Service Charge             3,140       3,140  
7/22/2008   6000000321  
Verizon
   A/P vendor payments             930       930  
7/22/2008   6000000319  
Pcs Connection LLC
   A/P vendor payments             284       284  
7/22/2008   6000000317  
Ampco System Parking
   A/P vendor payments             7,328       7,328  
7/22/2008   6000000320  
TMSI
   A/P vendor payments             906       906  
7/22/2008   6000000318  
Iron Mountain Records Mgmt Inc
   A/P vendor payments             585       585  
7/23/2008   6000000323  
Iron Mountain Records Mgmt Inc
   A/P vendor payments             783       783  
7/23/2008   6000000324  
Nextel Communication Sprint Nextel
   A/P vendor payments             951       951  
7/23/2008   6000000325  
Nrs Inc
   A/P vendor payments             2,119       2,119  
7/23/2008   6000000322  
Assi Security
   A/P vendor payments             125       125  
7/24/2008   wire 80084  
PR Newswire Association Llc
   A/P vendor payments             1,387       1,387  
7/24/2008   wire 80083  
Bowne of Los Angeles Inc
   A/P vendor payments             1,020       1,020  
7/24/2008   6000000326  
American Stock Exchange
   A/P vendor payments             60       60  
7/28/2008   6000000327  
Nextel Communication Sprint Nextel
   A/P vendor payments             381       381  
       
 
                      
       
 
   TOTAL DISBURSEMENTS THIS PERIOD:   $ —     $ 386,407     $ 386,407  
       
 
                      
 
*   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 15

 

GENERAL ACCOUNT
BANK RECONCILIATION
                     
 
  Bank statement Date:   7/31/2008   Balance on Statement:   $ 2,046,008  
 
                 
 
                    
Plus deposits in transit (a):                
 
      Deposit Date   Deposit Amount        
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
TOTAL DEPOSITS IN TRANSIT           $ —  
 
                 
 
                    
Less Outstanding Checks (a):                
 
  Check Number   Check Date   Check Amount        
 
  6000000327   7/28/2008   380.53        
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
 
                   
 
                    
TOTAL OUTSTANDING CHECKS:           $ 381  
 
                 
 
                    
Bank statement Adjustments:                
 
                 
Explanation of Adjustments-                
 
 
                    
 
 
                    
ADJUSTED BANK BALANCE:           $ 2,045,627  
 
                 

Page 3 of 15

 

I. CASH RECEIPTS AND DISBURSEMENTS
B. (PAYROLL ACCOUNT) (1)
                 
  1.    
TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS
   —  
       
 
      
       
 
        
  2.    
LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS
     —  
       
 
      
       
 
        
  3.    
BEGINNING BALANCE:
     —  
       
 
      
       
 
        
  4.    
RECEIPTS DURING CURRENT PERIOD:
        
       
(Transferred from General Account)
     —  
       
 
      
       
 
        
  5.    
BALANCE:
     —  
       
 
      
       
 
        
  6.    
LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD TOTAL DISBURSEMENTS THIS PERIOD:***
     —  
       
 
      
       
 
        
  7.    
ENDING BALANCE:
     —  
       
 
      
         
 
8.
PAYROLL Account Number(s):    
 
       
 
        
 
       
 
  Depository Name & Location:    
 
       
 
        
 
       
 
    Notes:
 
(1)   The Debtor’s payroll account has been closed.

Page 4 of 15

 

I. CASH RECEIPTS AND DISBURSEMENTS
C. (OVERNIGHT INVESTMENT ACCOUNT)
                 
  1.    
TOTAL RECEIPTS PER ALL PRIOR REPORTS
     29,540,833  
       
 
        
       
 
        
  2.    
LESS: TOTAL DISBURSEMENTS PER ALL PRIOR Reports
     —  
       
 
        
ACCOUNT REPORTS        
       
 
        
  3.    
BEGINNING BALANCE:
     29,540,833  
       
 
        
       
 
        
  4.    
RECEIPTS DURING CURRENT PERIOD:
     51,546 (1)
       
 
        
       
 
        
  5.    
BALANCE:
     29,592,379  
       
 
        
       
 
        
  6.    
LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
        
       
TOTAL DISBURSEMENTS THIS PERIOD:
     —  
       
 
        
       
 
        
  7.    
ENDING BALANCE:
     29,592,379  
       
 
        
       
 
        
  8.    
OVERNIGHT INVESTMENT ACCOUNT Number(s):
     xxxx9320
       
 
        
       
 
  
       
Depository Name & Location:
     Wells Fargo Bank - Pasadena Commercial Banking
       
 
  
       
 
 350 W. Colorado Blvd, Suite 210, Pasadena, CA 91105
       
 
  
 
    Note:
 
(1)   Represents interest received during period.

Page 5 of 15

 

TOTAL DISBURSEMENTS FROM OVERNIGHT INVESTMENT ACCOUNT FOR CURRENT PERIOD
                 
Date   Check            
mm/dd/yyyy   Number   Payee   Purpose   Amount
 
               
 
                
 
               
 
                
 
               
None
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
          TOTAL DISBURSEMENTS THIS PERIOD:   —
 
               
 
                

Page 6 of 15

 

OVERNIGHT INVESTMENT ACCOUNT
BANK RECONCILIATION
                 
 
  Bank statement Date:   7/31/2008   Balance on Statement:   $29,592,379 
 
               
Plus deposits in transit (a):
                 
        Deposit Date   Deposit Amount    
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
TOTAL DEPOSITS IN TRANSIT   — 
 
               
Less Outstanding Checks (a):
                 
    Check Number   Check Date   Check Amount    
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
TOTAL OUTSTANDING CHECKS:   — 
 
               
 
                
Bank statement Adjustments:    
 
               
Explanation of Adjustments-    
 
 
                
 
 
                
 
               
ADJUSTED BANK BALANCE:   $29,592,379 
 
               

Page 7 of 15

 

I. D SUMMARY SCHEDULE OF CASH
ENDING BALANCES FOR THE PERIOD:                     7/31/2008
(Provide a copy of monthly account statements for each of the below)
             
 
  General Account:   2,045,627     
 
           
 
  Payroll Account:   N/A     
 
           
 
  Overnight Investment Account:   29,592,379     
 
           
Other Accounts:
            
 
           
 
            
 
           
 
            
 
           
Other Monies:
            
 
           
 
  Petty Cash (from below):   —     
 
           
 
            
 
           
TOTAL CASH AVAILABLE:   31,638,006 
 
           
             
Petty Cash Transactions:            
Date   Purpose   Amount    
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
TOTAL PETTY CASH TRANSACTIONS:   N/A   — 
 
           

Page 8 of 15

 

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  
Water Garden Co. (Lessor)(1)
   1 per Month     185,190       1       185,190  
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                   TOTAL DUE:     185,190  
 
                              
III. TAX LIABILITIES
         
FOR THE REPORTING PERIOD:   July 2008    
         
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:
     —       —          
 
                    
 
    Notes:
 
(1)   Represents August lease payment on the Debtor’s office building space (i.e., prepayment of monthly rent).
         
    Page 9 of 15    

 

 

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE
                         
    Accounts Payable     Accounts Receivable  
    Post-Petition     Pre-Petition     Post-Petition  
30 days or less
     211,397       —       32,652  
 
                  
31 - 60 days
     2,835       12,450       —  
 
                  
61 - 90 days
     —       24,564       —  
 
                  
91 - 120 days
     —       (2,918 )     —  
 
                  
Over 120 days
     —       84,865       —  
 
                  
TOTAL:
     214,232       118,962       32,652  
 
                  
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       1/01/08-1/01/09       1/1/09  
   
 
                  
Continental Casualty  
Excess D&O
     15,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
U.S. Specialty  
Excess D&O
     15,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
RSUI Indemnity  
Excess D&O
     15,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Allied World Natl  
Excess D&O
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
U.S. Specialty  
Excess D&O
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Liberty Mutual  
Excess D&O
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Navigators Ins.  
Excess D&O
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Westchester Surplus  
Excess D&O
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Platte River  
Excess D&O
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Scottsdale Ins.  
Excess D&O
     5,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
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       1/01/08-1/01/09       1/1/09  
   
 
                  
XL Specialty  
Excess Fiduciary Liability
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
U.S. Specialty  
Excess Fiduciary Liability
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Navigators Ins.  
Excess Fiduciary Liability
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Allied World Natl  
Excess Fiduciary Liability
     5,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Westchester Surplus  
Excess Fiduciary Liability
     5,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
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
     10,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Zurich American  
Excess Crime Coverage
     20,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Continental Ins.  
Excess Crime Coverage
     30,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Federal Insurance  
Errors & Omissions
     5,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
U.S. Specialty  
Excess E&O
     5,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Federal Insurance  
Commercial Automobile
     1,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Federal Insurance  
Group Personal Umbrella
     500,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Federal Insurance  
Commercial Excess and Umbrella
     15,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Great American  
Excess Umbrella
     35,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Fireman’s Fund  
Excess Umbrella
     25,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
American Guarantee  
Excess Umbrella
     15,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
Federal Insurance  
Commercial Package
     43,351,906       1/01/08-1/01/09       1/1/09  
   
 
                  
Crum & Forster  
Workers Compensation
     1,000,000       1/01/08-1/01/09       1/1/09  
   
 
                  
         
    Page 10 of 15    

 

 

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)
                                         
Quarterly Period Ending                                   Quarterly Fees Still  
(Date)   Total Disbursements     Quarterly Fees     Date Paid     Amount Paid     Owing  
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
                                     —  
 
                              
 
             —               —       —  
 
                              

Page 11 of 15

 

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS
                         
    Date of Order Authorizing             Gross Compensation  
Name of Insider   Compensation     Authorized Gross Compensation     Paid During the Month  
 
                        
 
                  
No disbursements made to insiders during the period.                
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS
                         
    Date of Order Authorizing             Amount Paid During the  
Name of Insider   Compensation     Description     Month  
 
                        
 
                  
No disbursements made to insiders during the period.                
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  

Page 12 of 15

 

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
                 
    Current Month     Cumulative Post-Petition  
    7/31/2008     6/19/08-7/31/08  
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)
     359,336       359,336  
 
            
Compensation- group insurance
     —       —  
 
            
Compensation- 401(k)/ESOP/Incentive (1)
     7,395,176       7,437,197  
 
            
Occupancy
     11,909       13,563  
 
            
Payroll Taxes
     —       —  
 
            
Other Taxes (Itemize)
     —       —  
 
            
Information systems
     4,457       5,436  
 
            
Advertising and promotion
     10,164       15,034  
 
            
Telecom
     3,168       3,235  
 
            
Travel
     —       —  
 
            
Printing and supplies
     7,673       7,673  
 
            
Postage
     (29,156 )     (29,156 )
 
            
All other
     41,509       48,659  
 
            
Depreciation and Amortization
     952       1,904  
 
            
Rent Expense - Real Property
     —       —  
 
            
Lease Expense - Personal Property
     —       —  
 
            
Insurance
     126,502       177,321  
 
            
Miscellaneous Operating Expenses (Itemize)
     —       —  
 
            
Total Operating Expenses
     7,931,690       8,040,202  
 
            
 
                
Net Gain/(Loss) from Operations
     (7,931,690 )     (8,040,202 )
 
            
 
                
Non-Operating Income:
                
Interest Income
     51,592       84,823  
 
            
Net Gain on Sale of Assets (Itemize)
     —       —  
 
            
Other - Equity in Earnings of Subsidiaries
     144,075,512       144,075,512  
 
            
Other (Itemize) - SERP (2)
     —       (75,276 )
 
            
Total Non-Operating income
     144,127,104       144,085,059  
 
            
 
                
Non-Operating Expenses:
                
Interest Expense (3)
     23,914       33,480  
 
            
Legal and Professional (Itemize) (4)
     (13,464 )     844,763  
 
            
Other (Itemize)
     —       —  
 
            
Total Non-Operating Expenses
     10,450       878,243  
 
            
 
                
NET INCOME/(LOSS)
   $ 136,184,964     $ 135,166,614  
 
            
 
    Notes:
 
(1)   Includes non-cash compensation expense recognized upon assumed accelerated vesting of all unvested restricted stock awards.
 
(2)   Represents fair value adjustment on the assets held in the Debtor’s Supplemental Executive Retirement Plan, Supplemental Executive Retirement Plan II, and the related Merrill Lynch Non-Qualified Deferred Compensation Plan Trust Agreements (collectively, “SERP & EBP Accounts”).
 
(3)   Represents amortization of capitalized debt issuance costs.
 
(4)   Current Month includes professional fee reimbursements. Cumulative Post-Petition represents professional fee accruals (estimates) by the Debtor for financial statement (GAAP) purposes.
 
Page 13 of 15

 

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)
                 
    Current Month End          
ASSETS
                
Current Assets:
                
 
              
Unrestricted Cash
   $ 31,638,006          
 
              
Accounts Receivable
     151,614          
 
              
Prepaid Expenses
     4,732,077          
 
              
Other (Itemize) - SERP / EBP Accounts & Other Benefit Accounts
     11,967,391          
 
              
Other (Itemize) - Investment - FG Financing
     3,092,777          
 
              
Total Current Assets
             51,581,865  
 
              
 
                
Property, Plant, and Equipment
     287,014          
 
              
Accumulated Depreciation/Depletion
     (103,806 )        
 
              
Net Property, Plant, and Equipment
             183,208  
 
              
 
                
Other Assets (Net of Amortization):
                
Other (Itemize) - GSOP Merrill Lynch Acct. xxx-37M01
     17,976          
 
              
Investment in Subsidiary
     428,658,537          
 
              
Total Other Assets
             428,676,513  
 
              
 
                
TOTAL ASSETS
           $ 480,441,586  
 
              
 
                
LIABILITIES
                
Post-petition Liabilities:
                
Accounts Payable
     214,232          
 
              
Accruals (1)
     861,731          
 
              
Taxes Payable
     —          
 
              
Notes Payable
     —          
 
              
Professional fees
     —          
 
              
Secured Debt
     —          
 
              
Accrued Interest Payable
     —          
 
              
Accrued Bonus Payable
     881          
 
              
Other (Itemize) - Sr. Notes - Amortization of Capitalized Costs
     33,480          
 
              
Other (Itemize) - Discontinued Lease Liability
     (215,844 )        
 
              
Other (Itemize) - Interco. Payable FIL
     3,824          
 
              
Other (Itemize) - SERP/EBP accounts
     —          
 
              
Other
     (177,659 )        
 
              
Total Post-petition Liabilities
             898,304  
 
              
 
                
Pre-petition Liabilities / Liabilities Subject to Compromise:
                
Priority Liabilities
     —          
 
              
Unsecured Liabilities (1)
     356,393,741          
 
              
Total Pre-petition Liabilities
             356,393,741  
 
              
 
                
TOTAL LIABILITIES
             357,292,045  
 
              
 
                
EQUITY:
                
Pre-petition Owners’ Equity
     (31,427,529 )        
 
              
Post-petition Profit/(Loss)
     135,166,613          
 
              
Direct Charges to Equity
     19,410,457          
 
              
TOTAL EQUITY
             123,149,541  
 
              
 
                
TOTAL LIABILITIES & EQUITY
           $ 480,441,586  
 
              
 
    Notes:
 
(1)   Includes accruals (estimates) by the Debtor for financial statement presentation (GAAP) purposes.

Page 14 of 15

 

XI. QUESTIONNAIRE
             
 
         No         Yes   
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:  
   X    		 
          
 
            
 
      No   Yes
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:  
   X    		 
           
 
            
3.
  State what progress was made during the reporting period toward filing a plan of reorganization.        
 
            
 
   With the Debtor’s petition date on June 18, 2008, there is currently no update on the Debtor’s plan of reorganization.        
 
            
4.
  Describe potential future developments which may have a significant impact on the case:        
 
  None        
 
            
5.
  Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.        
 
  None   No   Yes
 
            
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.  
   X    		 
          
 
            
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 15 of 15

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