EX-99.1 2 v43749exv99w1.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:
           CHAPTER 11 (BUSINESS)        
 
                    
Fremont General Corporation
           Case Number:     8:08-bk-13421
Debtor
           Operating Report Number:     3
 
       For the Month Ending:     August 31, 2008
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT — MASTER DEMAND ACCOUNT)
                         
1.   TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS (1)             6,432,034  
 
                      
 
                        
2.   LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS             4,386,407  
 
                      
 
                        
3.   BEGINNING BALANCE:             2,045,627  
 
                      
 
                        
4.
   RECEIPTS DURING CURRENT PERIOD:                
    Accounts Receivable — Post-filing     —          
 
                      
    Accounts Receivable — Pre-filing     —          
 
                      
    General Sales     —          
 
                      
    Other (Specify)                
 
   Other (Specify)   Other     1,192          
 
                      
 
   Other (Specify)   Intercompany reimbursement (2)     30,795          
 
                      
 
                        
 
   TOTAL RECEIPTS THIS PERIOD:                 31,987  
 
                      
 
                        
5.
   BALANCE:                 2,077,614  
 
                      
 
                        
6.   LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD                
    Transfers to Other DIP Accounts (from page 2)     1,604,984          
 
                      
    Disbursements (from page 2)     420,078          
 
                      
 
    TOTAL DISBURSEMENTS THIS PERIOD:             2,025,062  
 
                      
 
                        
7.   ENDING BALANCE:             52,552  
 
                      
 
                        
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 sublease and 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 17

 

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD
                                     
Date   Check           *Amount     **Amount        
mm/dd/yyyy   Number   Payee or DIP account   Purpose   Transfered     Disbursed     Amount  
8/11/2008
   wire   Fremont Reorganizing Corporation   Intercompany payment for reimbursement of vendor invoices           $ 1,576     $ 1,576  
8/11/2008
   6000000328   Assi Security   A/P vendor payments             500       500  
8/11/2008
   6000000329   Ampco System Parking   A/P vendor payments             9,924       9,924  
8/11/2008
   6000000330   Iron Mountain Records Mgmt Inc   A/P vendor payments             1,423       1,423  
8/11/2008
   6000000331   LA Fine Arts   A/P vendor payments             330       330  
8/11/2008
   6000000332   Water Garden Co LLC   A/P vendor payments             497       497  
8/18/2008
   6000000333   Iron Mountain Records Mgmt Inc   A/P vendor payments             1,092       1,092  
8/19/2008
   wire   Shareholder.com   A/P vendor payments             885       885  
8/19/2008
   wire   PR Newswire Association LLC   A/P vendor payments             1,387       1,387  
8/19/2008
   wire   Bowne of Los Angeles Inc   A/P vendor payments             6,415       6,415  
8/20/2008
   wire   Wells Fargo   Client Analysis Service Charge             2,439       2,439  
8/20/2008
   6000000334   Broadridge   A/P vendor payments             1,675       1,675  
8/20/2008
   6000000335   Jordan Lawrence Group   A/P vendor payments             12,500       12,500  
8/22/2008
   6000000336   Mellon Investor Services LLC   A/P vendor payments             1,095       1,095  
8/22/2008
   6000000337   US Trustee   US Trustee Quarterly Fee             325       325  
8/22/2008
   6000000338   Water Garden Co LLC   August Rent             185,190       185,190  
8/27/2008
   wire   Fremont General Corporation   Bank Account Transfer     1,604,984       —       1,604,984  
8/27/2008
   6000000339   American Stock Exchange   A/P vendor payments             151       151  
8/27/2008
   6000000340   Iron Mountain Records Mgmt Inc   A/P vendor payments             1,444       1,444  
8/27/2008
   6000000341   NRS Inc   A/P vendor payments             1,382       1,382  
8/27/2008
   6000000342   Water Garden Co LLC   September Rent             185,190       185,190  
8/28/2008
   wire   Nicole Maury   A/P vendor payments             280       280  
8/28/2008
   wire   Ivize   A/P vendor payments             712       712  
8/28/2008
   wire   PR Newswire Association LLC   A/P vendor payments             1,212       1,212  
8/28/2008
   wire   Bowne of Los Angeles Inc   A/P vendor payments             2,455       2,455  
 
                              
 
           TOTAL DISBURSEMENTS THIS PERIOD:   $ 1,604,984     $ 420,078     $ 2,025,062  
 
                              
 
*   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 17

 

GENERAL ACCOUNT
BANK RECONCILIATION
                                 
 
   Bank statement Date:     8/31/2008     Balance on Statement:   $ 242,139  
 
                              
 
                                
Plus deposits in transit (a):                        
 
           Deposit Date     Deposit Amount          
 
                            
TOTAL DEPOSITS IN TRANSIT                   $ —  
 
                                
Less Outstanding Checks (a):                        
 
   Check Number     Check Date     Check Amount          
 
                          
 
     6000000336       8/22/2008       1,095          
 
     6000000337       8/22/2008       325          
 
     6000000339       8/27/2008       151          
 
     6000000340       8/27/2008       1,444          
 
     6000000341       8/27/2008       1,382          
 
     6000000342       8/27/2008       185,190          
 
TOTAL OUTSTANDING CHECKS:                   $ 189,587  
 
                              
 
                                
Bank statement Adjustments:                        
Explanation of Adjustments-                        
 
                                
ADJUSTED BANK BALANCE:                   $ 52,552  
 
                              

Page 3 of 17

 

I. CASH RECEIPTS AND DISBURSEMENTS
B. (COMMERCIAL MONEY MARKET ACCOUNT) (1)
                 
1. TOTAL RECEIPTS PER ALL PRIOR REPORTS
             —  
 
              
 
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR REPORTS
             —  
 
              
 
3. BEGINNING BALANCE:
             —  
 
              
 
4. RECEIPTS DURING CURRENT PERIOD:
                
Transferred from General Account
     1,604,984          
 
              
Transferred from Overnight Investment Account
     29,636,145          
 
              
Interest Income
     5,463          
 
              
 
TOTAL RECEIPTS THIS PERIOD:
             31,246,593  
 
              
 
5. BALANCE:
             31,246,593  
 
              
 
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
                
TOTAL DISBURSEMENTS THIS PERIOD:***
             —  
 
              
 
7. ENDING BALANCE:
             31,246,593  
 
              
 
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
 
Notes:
     
(1)   Commercial money market account converted in compliance with Section 345 of the Bankruptcy Code.

Page 4 of 17

 

TOTAL DISBURSEMENTS FROM COMMERCIAL MONEY MARKET ACCOUNT FOR CURRENT PERIOD
                                 
      Date   Check                    
mm/dd/yyyy   Number     Payee     Purpose     Amount  
None
                                
 
                                
 
TOTAL DISBURSEMENTS THIS PERIOD:
     0  
 
                              

Page 5 of 17

 

COMMERCIAL MONEY MARKET ACCOUNT
BANK RECONCILIATION
                                 
 
   Bank statement Date:     8/31/2008     Balance on Statement:   $ 31,246,593  
 
                                
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:           $ 31,246,593  
 
                              
 
*   It is acceptable to replace this form with a similar form
 
**   Please attach a detailed explanation of any bank statement adjustment

Page 6 of 17

 

I. CASH RECEIPTS AND DISBURSEMENTS
C. (OVERNIGHT INVESTMENT ACCOUNT)
         
1. TOTAL RECEIPTS PER ALL PRIOR REPORTS
     29,592,379  
 
      
 
        
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR Reports
     —  
 
      
ACCOUNT REPORTS
        
 
        
3. BEGINNING BALANCE:
     29,592,379  
 
      
 
        
4. RECEIPTS DURING CURRENT PERIOD:
     43,767 (1)
 
      
 
        
5. BALANCE:
     29,636,146  
 
      
 
        
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
       
TOTAL DISBURSEMENTS THIS PERIOD:
     29,636,145  
 
      
 
        
7. ENDING BALANCE:
     —  
 
      
         
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 7 of 17

 

TOTAL DISBURSEMENTS FROM OVERNIGHT INVESTMENT ACCOUNT FOR CURRENT PERIOD
                                 
Date   Check                    
mm/dd/yyyy   Number     Payee     Purpose     Amount  
8/27/2008
   wire   Fremont General Corporation   Balance transfer to Commercial Money Market account   $ 29,636,145  
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
TOTAL DISBURSEMENTS THIS PERIOD:   $ 29,636,145  
 
                              

Page 8 of 17

 

OVERNIGHT INVESTMENT ACCOUNT
BANK RECONCILIATION
                                 
 
   Bank statement Date:     8/31/2008     Balance on Statement:   $ 0  
 
                            
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:   $ 0  
 
                              

Page 9 of 17

 

I. D SUMMARY SCHEDULE OF CASH
     
ENDING BALANCES FOR THE PERIOD:
  8/31/2008
(Provide a copy of monthly account statements for each of the below)
                     
 
  General Account:     52,552          
 
                   
 
  Money Market Account:     31,246,593          
 
                   
 
  Overnight Investment Account:   —          
 
                   
 
  Payroll Account: (1)     N/A          
 
                   
Other Accounts:
                    
 
                   
 
                    
 
                   
 
                    
 
                   
Other Monies:
                    
 
                   
 
  Petty Cash (from below):   —          
 
                   
TOTAL CASH AVAILABLE:
                31,299,145  
 
                   
Petty Cash Transactions:
             
Date   Purpose   Amount    
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
            
 
           
 
TOTAL PETTY CASH TRANSACTIONS:
      N/A   —
 
           
 
(1)   The Debtor’s payroll account has been closed.

Page 10 of 17

 

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       —       —  
 
                        
 
 
                        
                                 
 
                        
                                 
 
                        
                                 
 
                        
                                 
 
                        
                                 
 
                        
                                 
 
                        
                                 
 
                        
                                 
 
                        
                                 
 
                        
 
 
                   TOTAL DUE:     —  
 
                              
III. TAX LIABILITIES
     
FOR THE REPORTING PERIOD:
  August 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 lease payment on the Debtor’s office building space (i.e., prepayment of monthly rent).

Page 11 of 17

 

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE
                         
    Accounts Payable   Accounts Receivable
    Post-Petition   Pre-Petition   Post-Petition
30 days or less
     35,036       —       1,857  
31 - 60 days
     3,653       —       32,184  
61 - 90 days
     —       12,450       —  
91 - 120 days
     —       24,564       —  
Over 120 days
     —       81,948       —  
 
                        
TOTAL:
     38,689       118,962       34,041  
 
                        
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 12 of 17

 

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)
                                         
Quarterly Period Ending                                   Quarterly Fees Still
(Date)   Total Disbursements   Quarterly Fees   Date Paid   Amount Paid   Owing
June 30, 2008
     0       325     22-Aug-2008     325       —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                        
 
             325               325       —  
 
                                        

Page 13 of 17

 

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 14 of 17

 

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
                 
    Current Month     Cumulative Post-Petition  
    8/31/2008     6/19/08-8/31/08  
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)
     226,725       586,061  
 
            
Compensation- group insurance
     —       —  
 
            
Compensation- 401(k)/ESOP/Incentive
     629       7,437,826  
 
            
Occupancy
     7,632       21,195  
 
            
Payroll Taxes
     —       —  
 
            
Other Taxes (Itemize)
     —       —  
 
            
Information systems
     3,075       8,511  
 
            
Advertising and promotion
     8,601       23,635  
 
            
Telecom
             3,235  
 
            
Travel
     —       —  
 
            
Printing and supplies
     2,455       10,128  
 
            
Postage
             (29,156 )
 
            
All other
     31,744       80,403  
 
            
Depreciation and Amortization
     952       2,856  
 
            
Rent Expense — Real Property
     —       —  
 
            
Lease Expense — Personal Property
     —       —  
 
            
Insurance
     126,502       303,823  
 
            
Miscellaneous Operating Expenses (Itemize)
     —       —  
 
            
Total Operating Expenses
     408,315       8,448,517  
 
            
 
                
Net Gain/(Loss) from Operations
     (408,315 )     (8,448,517 )
 
            
 
                
Non-Operating Income:
                
Interest Income
     49,265       134,088  
 
            
Net Gain on Sale of Assets (Itemize)
     —       —  
 
            
Other — Equity in Earnings of Subsidiaries
     (6,184,988 )     137,890,524  
 
            
Other (Itemize) — SERP (1)
     —       (75,276 )
 
            
Total Non-Operating income
     (6,135,723 )     137,949,336  
 
            
 
                
Non-Operating Expenses:
                
Interest Expense (2)
     23,914       57,394  
 
            
Legal and Professional (Itemize) (3)
     1,266,800       2,111,563  
 
            
Total Non-Operating Expenses
     1,290,714       2,168,957  
 
            
 
                
 
            
NET INCOME/(LOSS)
   $ (7,834,752 )   $ 127,331,862  
 
            
 
Notes:
 
(1)   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”).
 
(2)   Represents amortization of capitalized debt issuance costs.
 
(3)   Represents professional fee accruals (estimates) by the Debtor for financial statement (GAAP) purposes.

Page 15 of 17

 

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)
                 
    Current Month End          
ASSETS
                
Current Assets:
                
Unrestricted Cash
   $ 31,299,145          
 
              
Accounts Receivable
     153,003          
 
              
Intercompany Receivable
     2,011,000          
 
              
Prepaid Expenses
     4,550,650          
 
              
Other (Itemize) — SERP / EBP Accounts & Other Benefit Accounts
     11,718,222          
 
              
Other (Itemize) — Investment — FG Financing
     3,092,777          
 
              
Total Current Assets
             52,824,797  
 
              
 
                
Property, Plant, and Equipment
     287,014          
 
              
Accumulated Depreciation/Depletion
     (106,184 )        
 
              
Net Property, Plant, and Equipment
             180,830  
 
              
 
                
Other Assets (Net of Amortization):
                
Other (Itemize) — GSOP Merrill Lynch Acct. xxx-37M01
     18,011          
 
              
Investment in Subsidiary
     422,473,549          
 
              
 
                
Total Other Assets
             422,491,560  
 
              
TOTAL ASSETS
           $ 475,497,187  
 
              
 
                
LIABILITIES
                
Post-petition Liabilities:
                
Accounts Payable
     38,689          
 
              
Accruals (1)
     4,064,130          
 
              
Taxes Payable
     —          
 
              
Professional fees
     —          
 
              
Accrued Interest Payable
     —          
 
              
Accrued Bonus Payable
     1,510          
 
              
Other (Itemize) — Sr. Notes — Amortization of Capitalized Costs
     57,395          
 
              
Other (Itemize) — Discontinued Lease Liability
     (370,516 )        
 
              
Other (Itemize) — Interco. Payable FIL
     46,853          
 
              
Other (Itemize) — SERP/EBP accounts
     —          
 
              
Other
     (263,567 )        
 
              
Total Post-petition Liabilities
             3,839,252  
 
              
 
                
Pre-petition Liabilities / Liabilities Subject to Compromise:
                
Secured Liabilities
     —          
 
              
Priority Liabilities
     —          
 
              
Unsecured Liabilities (1)
     356,145,760          
 
              
Total Pre-petition Liabilities
             356,145,760  
 
              
TOTAL LIABILITIES
             359,985,012  
 
              
 
                
EQUITY:
                
Pre-petition Owners’ Equity
     (31,230,144 )        
 
              
Post-petition Profit/(Loss)
     127,331,862          
 
              
Direct Charges to Equity
     19,410,457          
 
              
TOTAL EQUITY
             115,512,175  
 
              
 
                
TOTAL LIABILITIES & EQUITY
           $ 475,497,187  
 
              
Notes:    
 
(1)   Includes accruals (estimates) by the Debtor for financial statement presentation (GAAP) purposes.

Page 16 of 17

 

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. 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 17 of 17