EX-99.1 2 v51823exv99w1.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:   9  
 
 
                 
 
Debtor
          For the Month Ending:   28-Feb-09  
           
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT — MASTER DEMAND ACCOUNT)
                 
1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS (1)
             11,314,545  
 
              
 
                
2. LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
             11,309,433  
 
              
 
                
 
              
3. BEGINNING BALANCE:
             5,114  
 
              
 
                
4. RECEIPTS DURING CURRENT PERIOD:
                
Accounts Receivable — Post-filing
     —        
 
            
Accounts Receivable — Pre-filing
     —        
 
            
General Sales
     —        
 
            
Other (Specify)          Transfers from Money Market Acct
     874,000        
 
            
 
                
 
              
TOTAL RECEIPTS THIS PERIOD:
             874,000  
 
              
 
                
 
              
5. BALANCE:
             879,114  
 
              
 
                
6. LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD
                
 
              
Transfers to Other DIP Accounts (from page 2)
             —  
 
              
Disbursements (from page 2)
             874,329  
 
              
 
                
 
              
7. ENDING BALANCE:
             4,784  
 
              
 
                
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  
2/4/2009
  wire   Barney Northcote   Director fees       $ 5,833     $ 5,833  
2/4/2009
  wire   David S. Depillo   Director fees         5,833       5,833  
2/4/2009
  wire   Robert Shackleton   Director fees         5,833       5,833  
2/4/2009
  wire   John Charles Loring   Director fees         5,833       5,833  
2/4/2009
  wire   Mark Schaffer   Director fees         5,833       5,833  
2/4/2009
  wire   KPMG Corporate Finance LLC   Professional fees         25,000       25,000  
2/4/2009
    6000000396     Stephen H. Gordon   Director fees         5,833       5,833  
2/11/2009
  wire   FTI Consulting   Professional fees         91,344       91,344  
2/11/2009
  wire   Patton Boggs LLP   Professional fees         115,568       115,568  
2/11/2009
  wire   Klee, Tuchin, Bogdanoff & Stern LLP   Professional fees         129,746       129,746  
2/11/2009
  wire   Epstein, Becker, & Green P.C.   Professional fees         162,701       162,701  
 
                                    
2/11/2009
    6000000397     ADP Pleasanton National Service Center Inc.   A/P vendor payments         215       215  
2/11/2009
    6000000398     Iron Mountain Records Mgmt Inc   A/P vendor payments         1,444       1,444  
2/11/2009
    6000000399     LA Fine Arts   A/P vendor payments         330       330  
2/11/2009
    6000000400     Mellon Investor Services LLC   A/P vendor payments         3,477       3,477  
2/11/2009
    6000000401     R&R Electric   A/P vendor payments         405       405  
2/18/2009
  wire   Shareholder.com   A/P vendor payments         885       885  
2/18/2009
  wire   Klee, Tuchin, Bogdanoff & Stern LLP   Professional fees         117,008       117,008  
 
                                    
2/18/2009
    6000000402     ADP Pleasanton National Service Center Inc.   A/P vendor payments         12       12  
2/18/2009
    6000000403     Iron Mountain Records Mgmt Inc   A/P vendor payments         1,015       1,015  
2/18/2009
    6000000404     West Payment Center   A/P vendor payments         3,483       3,483  
2/20/2009
  wire   Wells Fargo   Client Analysis Service Charge         2,606       2,606  
2/25/2009
  wire   Bowne of Los Angeles Inc   A/P vendor payments         755       755  
2/25/2009
  wire   CRG Partners Group LLC   Professional fees         4,118       4,118  
2/25/2009
  wire   Weiland, Golden, Smiley, Wang, Ekvall, and Strok LLP   Professional fees         41,379       41,379  
2/25/2009
  wire   Stutman, Treister, and Glatt PC   Professional fees         135,446       135,446  
2/25/2009
    6000000405     Iron Mountain Records Mgmt Inc   A/P vendor payments         1,444       1,444  
2/25/2009
    6000000406     Reed Elsevier Inc.   A/P vendor payments         950       950  
 
                                    
 
                               
 
              TOTAL DISBURSEMENTS 
THIS PERIOD:  		  $            — $ 874,329     $ 874,329  
 
                               
 
*   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:     2/28/2009   Balance on Statement:     $ 19,071  
 
                         
 
                            
Plus deposits in transit (a):                    
 
 
          Deposit Date   Deposit Amount          
 
                         
 
                            
 
                         
 
                            
 
                         
 
                            
 
                         
 
                            
 
                       
TOTAL DEPOSITS IN TRANSIT               $ —  
 
                       
 
                            
Less Outstanding Checks (a):                    
 
 
  Check Number     Check Date   Check Amount          
 
                       
 
    6000000387     1/7/2009     5,833          
 
                       
 
    6000000396     2/4/2009     5,833          
 
                       
 
    6000000397     2/11/2009     215          
 
                       
 
    6000000402     2/18/2009     12          
 
                       
 
    6000000405     2/25/2009     1,444          
 
                       
 
    6000000406     2/25/2009     950          
 
                       
 
                            
 
                       
 
                           
 
                       
 
                            
 
                       
 
                            
 
                       
 
                            
 
                       
 
                            
 
                       
 
                            
 
                       
 
                            
 
                       
 
                            
 
                       
 
                            
 
                       
 
 
                         
TOTAL OUTSTANDING CHECKS:               $ 14,287  
 
                         
 
                            
Bank statement Adjustments:                    
 
                         
Explanation of Adjustments-                    
 
 
 
 
                            
 
                         
ADJUSTED BANK BALANCE:               $ 4,784  
 
                         

Page 3 of 14

 

I. CASH RECEIPTS AND DISBURSEMENTS
B. (COMMERCIAL MONEY MARKET ACCOUNT)
                 
1. TOTAL RECEIPTS PER ALL PRIOR REPORTS
             31,716,171  
 
              
 
                
2. LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR REPORTS
       4,341,337  
 
              
 
                
 
              
3. BEGINNING BALANCE:
             27,374,834  
 
              
 
                
4. RECEIPTS DURING CURRENT PERIOD:
                
Transferred from General Account
                
 
              
Transferred from Overnight Investment Account
                
 
              
Interest Income
     2,478          
 
              
 
                
 
              
TOTAL RECEIPTS THIS PERIOD:
             2,478  
 
              
 
                
 
              
5. BALANCE:
             27,377,312  
 
              
 
                
6. LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD
          
 
              
Transfers to Other DIP Accounts (from page 5)
             874,000  
 
              
Disbursements (from page 5)
             3,257  
 
              
 
                
 
              
7. ENDING BALANCE:
             26,500,055  
 
              
 
                
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   Check           *Amount   **Amount    
mm/dd/yyyy   Number   Payee   Purpose   Transferred   Disbursed   Amount
2/4/2009
  wire   Fremont General Corporation   Bank account transfer   $ 60,000             $ 60,000  
2/11/2009
  wire   Fremont General Corporation   Bank account transfer     505,000               505,000  
2/18/2009
  wire   Fremont General Corporation   Bank account transfer     123,000               123,000  
2/20/2009
  wire   Wells Fargo   Client Analysis Service Charge             3,257       3,257  
2/25/2009
  wire   Fremont General Corporation   Bank account transfer     186,000               186,000  
 
                                    
 
                             
 
          TOTAL DISBURSEMENTS THIS
PERIOD: 		  $ 874,000     $ 3,257     $ 877,257  
 
                             
 
*   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:     2/28/2009   Balance on Statement:     $ 26,500,055  
 
                         
 
                            
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:               $ 26,500,055  
 
                         
 
*   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 Payments             Post-Petition payments        
Creditor, Lessor, Etc.   (Mo/Qtr)     Amount of Payment     not made (Number)     Total Due  
—
     —       —       —       —  
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
 
                                
 
                        
TOTAL DUE:
       —  
 
                              
III. TAX LIABILITIES
     
FOR THE REPORTING PERIOD:
  February 28, 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: 2/28/2009 
(Provide a copy of monthly account statements for each of the below)
                         
       
General Account:
     4,784          
       
 
              
       
Money Market Account:
     26,500,055          
       
 
              
       
Payroll Account:
  (1)   N/A          
       
 
              
       
 
                
     Other Accounts:  
 
                
       
 
              
                         
       
 
              
                         
       
 
              
Other Monies:  
 
                
       
 
              
       
Petty Cash (from below):
     —          
       
 
              
       
 
                
       
 
              
TOTAL CASH AVAILABLE:             26,504,839  
       
 
              
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
     3,372       —       —  
 
                  
31 - 60 days
     615       —       —  
 
                  
61 - 90 days
     —               —  
 
                  
91 - 120 days
     —               —  
 
                  
Over 120 days
     21,273       118,819          
 
                  
TOTAL:
     25,260       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      1/01/09-4/01/09    4/1/09
Continental Casualty
   Excess D&O     15,000,000     1/01/09-4/01/09   4/1/09
U.S. Specialty
   Excess D&O     15,000,000     1/01/09-4/01/09   4/1/09
RSUI Indemnity
   Excess D&O     15,000,000     1/01/09-4/01/09   4/1/09
Allied World Natl
   Excess D&O     10,000,000     1/01/09-4/01/09   4/1/09
U.S. Specialty
   Excess D&O     10,000,000     1/01/09-4/01/09   4/1/09
Liberty Mutual
   Excess D&O     10,000,000     1/01/09-4/01/09   4/1/09
Navigators Ins.
   Excess D&O     10,000,000     1/01/09-4/01/09   4/1/09
Westchester Surplus
   Excess D&O     10,000,000     1/01/09-4/01/09   4/1/09
Platte River
   Excess D&O     10,000,000     1/01/09-4/01/09   4/1/09
Scottsdale Ins.
   Excess D&O     5,000,000     1/01/09-4/01/09   4/1/09
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     1/01/09-4/01/09   4/1/09
XL Specialty
   Excess Fiduciary Liability     10,000,000     1/01/09-4/01/09   4/1/09
U.S. Specialty
   Excess Fiduciary Liability     10,000,000     1/01/09-4/01/09   4/1/09
Navigators Ins.
   Excess Fiduciary Liability     10,000,000     1/01/09-4/01/09   4/1/09
Allied World Natl
   Excess Fiduciary Liability     5,000,000     1/01/09-4/01/09   4/1/09
Westchester Surplus
   Excess Fiduciary Liability     5,000,000     1/01/09-4/01/09   4/1/09
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     1/01/09-4/01/09   4/1/09
Zurich American
   Excess Crime Coverage     15,000,000     1/01/09-4/01/09   4/1/09
Continental Ins.
   Excess Crime Coverage     10,000,000     1/01/09-4/01/09   4/1/09
Federal Insurance
   Errors & Omissions     5,000,000     1/01/09-4/01/09   4/1/09
U.S. Specialty
   Excess E&O     5,000,000     1/01/09-4/01/09   4/1/09
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 Still
Quarterly Period Ending (Date)   (during Quarter)     Quarterly Fees     Date Paid   Amount Paid   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     —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
                              —
 
                       
 
            15,601           15,601     —
 
                         

Page 10 of 14

 

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 compensation 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
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  
    2/28/09     6/19/08-2/28/09  
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)
     104,216       1,264,741  
 
            
Compensation- group insurance
     —       —  
 
            
Compensation- 401(k)/ESOP/Incentive
     629       (1,720,987 )
 
            
Occupancy
     1,015       496,506  
 
            
Payroll Taxes
     —       —  
 
            
Other Taxes (Itemize)
     —       —  
 
            
Information systems
     1,444       23,886  
 
            
Advertising and promotion
             23,635  
 
            
Telecom
     —       2,932  
 
            
Travel
     532       1,243  
 
            
Printing and supplies
     1,370       15,073  
 
            
Postage
             (29,156 )
 
            
All other
     45,260       354,584  
 
            
Depreciation and Amortization
     2,072       18,611  
 
            
Rent Expense — Real Property
             —  
 
            
Lease Expense — Personal Property
     —       —  
 
            
Insurance
     162,302       1,369,326  
 
            
Miscellaneous Operating Expenses (Itemize)
     —       —  
 
            
Total Operating Expenses
     318,840       1,820,394  
 
            
 
                
 
            
Net Gain/(Loss) from Operations
     (318,840 )     (1,820,394 )
 
            
 
                
Non-Operating Income:
                
 
            
Interest Income
     2,488       206,290  
 
            
Net Gain on Sale of Assets (Itemize)
     —       —  
 
            
Other — Equity in Earnings of Subsidiaries
     (8,153,181 )     161,342,091  
 
            
Other (Itemize) — SERP
     —       (75,276 )
 
            
Total Non-Operating income
     (8,150,693 )     161,473,105  
 
            
 
                
Non-Operating Expenses:
                
 
            
Interest Expense (1)
     23,914       200,878  
 
            
Legal and Professional (Itemize) (2)
     1,415,057       7,280,748  
 
            
Other (Itemize)
     —       —  
 
            
Total Non-Operating Expenses
     1,438,971       7,481,626  
 
            
 
                
 
            
NET INCOME/(LOSS)
   $ (9,908,504 )   $ 152,171,085  
 
            
 
    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
   $ 26,504,839          
 
              
Accounts Receivable
     118,819          
 
              
Intercompany Receivable
     2,616,289          
 
              
Prepaid Expenses
     3,186,524          
 
              
Other (Itemize) — SERP / EBP Accounts & Other Benefit Accounts
     11,657,411          
 
              
Other (Itemize) — Investment — FG Financing
     3,092,777          
 
            
Total Current Assets
             47,176,659  
 
              
Property, Plant, and Equipment
     287,014          
 
              
Accumulated Depreciation/Depletion
     (119,085 )        
 
            
Net Property, Plant, and Equipment
             167,929  
 
              
 
                
Other Assets (Net of Amortization):
                
 
              
Other (Itemize) — GSOP Merrill Lynch Acct. xxx-37M01
     14,911          
 
              
Investment in Subsidiary
     445,925,116          
 
            
Total Other Assets
             445,940,027  
 
              
 
                
 
              
TOTAL ASSETS
           $ 493,284,615  
 
              
 
                
LIABILITIES
                
Post-petition Liabilities:
                
 
              
Accounts Payable
     25,260          
 
              
Accruals (1)
     5,175,670          
 
              
Taxes Payable
     —          
 
              
Professional fees
     —          
 
              
Accrued Interest Payable
     —          
 
              
Other
     1,738,341          
 
            
Total Post-petition Liabilities
             6,939,271  
 
              
 
                
Pre-petition Liabilities / Liabilities Subject to Compromise:
                
 
              
Priority Liabilities
     —          
 
              
Unsecured Liabilities (1)
     341,481,220          
 
            
Total Pre-petition Liabilities
             341,481,220  
 
              
TOTAL LIABILITIES
             348,420,491  
 
              
 
                
EQUITY:
                
Pre-petition Owners’ Equity
     (17,544,686 )        
 
              
Post-petition Profit/(Loss)
     152,171,085          
 
              
Direct Charges to Equity
     10,237,725          
 
            
TOTAL EQUITY
             144,864,124  
 
              
 
                
 
              
TOTAL LIABILITIES & EQUITY
           $ 493,284,615  
 
              
 
    Notes:
 
(1)   Includes accruals (estimates) by the Debtor for financial statement presentation (GAAP) purposes.

Page 13 of 14

 

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.
        
       
 
        
       
See “Order Granting Motion of Debtor to Approve Stipulation Granting Relief From the Automatic Stay, “ filed and entered on February, 26, 2009 [Docket No. 520].
  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 14 of 14

 

(STAMP)
THEODORE B. STOLMAN (State Bar No. CA 52099)
TStolman@Stutman.com
WHITMAN L. HOLT (State Bar No. CA 238198)
WHolt@Stutman.com
STUTMAN, TREISTER & GLATT, P.C.
1901 Avenue of the Stars, 12th Floor
Los Angeles, CA 90067
Telephone:      (310) 228-5600
Facsimile:        (310) 228-5788
-and-
ROBERT W. JONES (State Bar No. TX 10951200)
RWJones@pattonboggs.com
BRENT R. MCILWAIN (State Bar No. TX 24013140)
BMcIlwain@pattonboggs.com
PATTON BOGGS LLP
2001 Ross Avenue, Suite 3000
Dallas, TX 75201-8001
Telephone:       (214) 758-1500
Facsimile:         (214) 758-1550
Reorganization Counsel for
Debtor and Debtor in Possession
Debtor’s Mailing Address:
2727 East Imperial Highway
Brea, California 92821
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
SANTA ANA DIVISION
         
In re:
  §   Case No. 8:08–13421–ES
 
  §    
FREMONT GENERAL CORPORATION,
  §   CHAPTER 11
a Nevada corporation,
  §    
 
  §   ORDER GRANTING MOTION OF
Debtor.
  §   DEBTOR TO APPROVE STIPULATION
 
  §   GRANTING RELIEF FROM THE
Tax I.D. 95-2815260
  §   AUTOMATIC STAY
 
  §    
 
  §    
 
  §   Hearing
 
  §   [None Required]
 
  §    
 
  §    
 
  §    
 
       
(BARCODE)

 

 

     The Court, having reviewed the Motion of Debtor to Approve Stipulation (the “Motion”), the accompanying Declaration of Donald E. Royer, and the attached Stipulation Granting Relief from Automatic Stay (the “Stipulation”) [ Docket No. 435]; and having reviewed the Lead Plaintiff’s Limited Objection to Debtor’s Motion for Order Granting Relief From The Automatic Stay to Permit CNA Global Specialty Lines to Advance Defense Costs to Certain Individual Defendants filed by the New York State Teachers’ Retirement System (the “Limited Objection”)[ Docket No. 455], and whose requests are implemented below; and it appearing that there is good and sufficient cause to approve the Stipulation; and after due deliberation thereon;
IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT:
     1. The Stipulation, a copy of which is attached to the Motion as Exhibit “A,” is approved;
     2. Nothing in this Order and the Stipulation shall constitute a determination that the proceeds of the Fiduciary Liability Policy (No. 287202290) (the “Policy”) issued by CNA Global Specialty Lines are property of the Debtor’s estate and the rights of all parties in interest to assert that the proceeds of the Policy are, or are not, property of the Debtor’s estate are reserved; and
     3. The Motion is GRANTED and the automatic stay is lifted only to the extent it applies to the use of the proceeds of the Policy as contemplated in the Stipulation.
///
///
///

2

 

     
Presented by:
    
 
    
/s/ Whitman L. Holt
    
 
THEODORE B. STOLMAN
   
WHITMAN L. HOLT
    
STUTMAN, TREISTER & GLATT
    
PROFESSIONAL CORPORATION
    
– and –
ROBERT W. JONES
BRENT R. MCILWAIN
PATTON BOGGS LLP
Reorganization Counsel for Debtor and Debtor in Possession
###
         
 
  (SIGNATURE)    
DATED: February 26, 2009
 
 
United States Bankruptcy Judge 		   

3

 

     
In re: FREMONT GENERAL CORP.,
  CHAPTER 11
 
    
Debtor(s).
  CASE NUMBER 8:08-bk-13421-ES
NOTE: When using this form to indicate service of a proposed order, DO NOT list any person or entity in Category I.

Proposed orders do not generate an NEF because only orders that have been entered are placed on the CM/ECF docket.
PROOF OF SERVICE OF DOCUMENT
I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is: 1901 Avenue of the Stars, 12th Floor, Los Angeles, CA 90067.
The foregoing document described [Proposed] ORDER GRANTING MOTION OF DEBTOR TO APPROVE STIPULATION GRANTING RELIEF FROM THE AUTOMATIC STAY will be served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner indicated below:
I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (“NEF”) — Pursuant to controlling General Order(s) and Local Bankruptcy Rule(s) (“LBR”), the foregoing document will be served by the court via NEF and hyperlink to the document. On                     , I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following person(s) are on the Electronic Mail Notice List to receive NEF transmission at the email address(es) indicated below:
     None.
o Service information continued on attached page
II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL (indicate method for each person or entity served): On February 10, 2009, I served the following person(s) and/or entity(ies) at the last known address(es) in this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States Mail, first class, postage prepaid, and/or with an overnight mail service addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed.
     See following page.
þ Service information continued on attached page
III. SERVED BY PERSONAL DELIVERY. FACSIMILE TRANSMISSION OR EMAIL (indicate method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on                     I served the following person(s) and/or entity(ies) by personal delivery, or (for those who consented in writing to such service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on the judge will be completed no later than 24 hours after the document is filed.
o Service information continued on attached page
 
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
 
January 2009 F 9013-3.1

 

 

     
In re: FREMONT GENERAL CORP.,
  CHAPTER 11
 
    
Debtor(s).
  CASE NUMBER 8:08-bk-13421-ES
I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.
         
02/10/2009
  Melissa Altamirano    /s/ Melissa Altamirano
     
Date
               Type Name   Signature
SERVICE BY THE COURT VIA NOTICE OF ELECTRONIC FILING (“NEF”)
SERVICE BY U.S. MAIL
     
The Honorable Erithe Smith
  Fremont General Corporation
USBC — Central District of California
  2727 East Imperial Highway
Ronald Reagan Federal Building and
  Brea, CA 92821
United States Courthouse
  Attn: General Counsel
411 West Fourth Street, Ste. 5041
    
Santa Ana, CA 92701-4593
    
 
    
United States Trustee
  Fremont Reorganizing Corporation(f/k/a
411 West Fourth Street, Suite 9041
  Fremont Investment & Loan)
Santa Ana, CA 92701-4593
  2727 East Imperial Highway
 
  Brea, CA 92821
 
  Attn: General Counsel
 
    
Attys for Defs Stephen H. Gordon and David S. De Pillo
  Attys for Defs Stephen H. Gordon and David S. De Pillo
Steven A. Marenberg, Charles E. Elder
  Kerri A. Lyman, Esq.
Irell & Manella LLP
  Irell & Manella
1800 Avenue of the Stars, Suite 900
  840 Newport Center Drive, Suite 400
Los Angeles, CA 90067-4276
  Newport Beach, CA 92660
 
    
Bk Attys for NY State Teachers’ Retirement System
    
Jesse S. Finlayson, Michael R. Williams
    
Finlayson Augustini & Williams
    
110 Newport Center Drive, Suite 100
    
Newport Beach, CA 92660
    
 
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
 
January 2009 F 9013-3.1

 

 

     
In re: FREMONT GENERAL CORP.,
  CHAPTER 11
 
    
Debtor(s).
  CASE NUMBER 8:08-bk-13421-ES
SERVICE BY OVERNIGHT
           
           
 
 
       
           
 
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
 
January 2009 F 9013-3.1

 

 

     
In re: FREMONT GENERAL CORP.,
  CHAPTER 11
 
    
Debtor(s).
  CASE NUMBER 8:08-bk-13421-ES
NOTE TO USERS OF THIS FORM:
1) Attach this form to the last page of a proposed Order or Judgment. Do not file as a separate document.
2) The title of the judgment or order and all service information must be filled in by the party lodging the order.
3) Category I. below: The United States trustee and case trustee (if any) will always be in this category.
4) Category II. below: List ONLY addresses for debtor (and attorney), movant (or attorney) and person/entity (or attorney) who filed an opposition to the requested relief. DO NOT list an address if person/entity is listed in category I.
NOTICE OF ENTERED ORDER AND SERVICE LIST
Notice is given by the court that a judgment or order entitled ORDER GRANTING MOTION OF DEBTOR TO APPROVE STIPULATION GRANTING RELIEF FROM THE AUTOMATIC STAY was entered on the date indicated as “Entered” on the first page of this judgment or order and will be served in the manner indicated below:
I. SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (“NEF”) Pursuant to controlling General Order(s) and Local Bankruptcy Rule(s), the foregoing document was served on the following person(s) by the court via NEF and hyperlink to the judgment or order. As of February 10, 2009, the following person(s) are currently on the Electronic Mail Notice List for this bankruptcy case or adversary proceeding to receive NEF transmission at the email address(es) indicated below.
     See following page.
þ Service information continued on attached page
II. SERVED BY THE COURT VIA U.S. MAIL: A copy of this notice and a true copy of this judgment or order was sent by U.S. Mail to the following person(s) and/or entity(ies) at the address(es) indicated below:
     
Fremont General Corporation
  Fremont Reorganizing Corporation (f/k/a
2727 East Imperial Highway
  Fremont Investment & Loan)
Brea, CA 92821
  2727 East Imperial Highway
Attn: General Counsel
  Brea, CA 92821
 
  Attn: General Counsel
Service information continued on attached page
III. TO BE SERVED BY THE LODGING PARTY: Within 72 hours after receipt of a copy of this judgment or order which bears an “Entered” stamp, the party lodging the judgment or order will serve a complete copy bearing an “Entered” stamp by U.S. Mail, overnight mail, facsimile transmission or email and file a proof of service of the entered order on the following person(s) and/or entity(ies) at the address(es), facsimile transmission number(s) and/or email address(es) indicated below:
þ Service information continued on attached page
 
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
 
January 2009 F 9021-1.1

 

 

     
In re: FREMONT GENERAL CORP.,
  CHAPTER 11
 
    
Debtor(s).
  CASE NUMBER 8:08-bk-13421-ES
SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (“NEF”)
Kristen N Beall       kbeall@pattonboggs.com, bmcilwain@pattonboggs.com
Dustin P Branch       dustin.branch@kattenlaw.com
Frank Cadigan       frank.cadigan@usdoj.gov
Jesse S Finlayson       jfinlayson@faw-law.com, wmills@faw-law.com
Matthew Heyn       mheyn@ktbslaw.com
Whitman L Holt      wholt@stutman.com
Mark D Houle       mark.houle@pillsburylaw.com
Michelle Hribar       mhribar@rutan.com
Lewis R Landau       lew@landaunet.com
Kerri A Lyman       klyman@irell.com
Robert S Marticello       Rmarticello@wgllp.com
Sarah D Moyed      moyeds@sec.gov
David L Osias       bcrfilings@allenmatkins.com, dosias@allenmatkins.com
Jonathan Petrus       jpetrus@ktbslaw.com
David M Poitras      dpoitras@jmbm.com
Michael B Reynolds       mreynolds@swlaw.com, kcollins@swlaw.com
Jonathon Shenson       jshenson@ktbslaw.com
Evan D Smiley       esmiley@wgllp.com
Philip E Strok       pstrok@wgllp.com
Samuel J Teele       steele@lowenstein.com
United States Trustee (SA)      ustpregionl6.sa.ecf@usdoj.gov
Alan Z Yudkowsky       ayudkowsky@stroock.com
Scott H Yun       syun@stutman.com
 
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
 
January 2009 F 9021-1.1