ELAH Holdings, Inc. - FORM 8-K - EX-99.1 - January 19, 2010

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8-K - FORM 8-K - ELAH Holdings, Inc.v54889e8vk.htm
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:   19
 
        
Debtor
   For the Month Ending:   31-Dec-09
 
        
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT — MASTER DEMAND ACCOUNT)
                 
1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS (1)
             26,838,908  
 
                
 
2. LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR GENERAL
             26,836,277  
 
                
 
ACCOUNT REPORTS
                
 
3. BEGINNING BALANCE:
             2,632  
 
                
 
4. RECEIPTS DURING CURRENT PERIOD:
                
Accounts Receivable — Post-filing
     —          
 
                
Accounts Receivable — Pre-filing
     —          
 
                
General Sales
     —          
 
                
Other (Specify)          Transfers from Money Market Acct
     1,488,000          
 
                
 
TOTAL RECEIPTS THIS PERIOD:
             1,488,000  
 
                
 
5. BALANCE:
             1,490,632  
 
                
 
6. LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD
                
Transfers to Other DIP Accounts (from page 2)
             —  
 
                
Disbursements (from page 2)
             1,487,882  
 
                
 
7. ENDING BALANCE:
             2,750  
 
                
 
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  
12/2/2009
   wire   Bowne of Los Angeles Inc   A/P vendor payments           $ 1,485     $ 1,485  
12/2/2009
   wire   Robert Shackleton   Director Fees             5,833       5,833  
12/2/2009
   wire   Mark Schaffer   Director Fees             5,833       5,833  
12/2/2009
   wire   David S. Depillo   Director Fees             5,833       5,833  
12/2/2009
   wire   Barney Northcote   Director Fees             5,833       5,833  
12/2/2009
   wire   KPMG Corporate Finance LLC   Professional fees             25,000       25,000  
12/2/2009
   wire   Patton Boggs LLP   Professional fees             66,371       66,371  
12/2/2009
   wire   Stutman, Treister, and Glatt PC   Professional fees             242,789       242,789  
12/2/2009
   6000000484   LA Fine Arts   A/P vendor payments             330       330  
12/2/2009
   6000000485   Stephen H. Gordon   Director Fees             5,833       5,833  
12/9/2009
   wire   Ernst & Young   Professional fees             9,720       9,720  
12/9/2009
   wire   Epstein, Becker, & Green P.C.   Professional fees             11,558       11,558  
12/9/2009
   wire   Willenken Wilson Loh and Lieb LLP   Professional fees             12,055       12,055  
12/9/2009
   wire   Caldwell Law Firm   Professional fees             20,856       20,856  
12/9/2009
   wire   Solon Group, Inc.   Professional fees             24,180       24,180  
12/9/2009
   wire   FTI Consulting   Professional fees             79,107       79,107  
12/9/2009
   wire   Patton Boggs LLP   Professional fees             107,296       107,296  
12/16/2009
   wire   Thomson Financial   A/P vendor payments             10,678       10,678  
12/16/2009
   wire   Klee, Tuchin, Bogdanoff & Stern LLP   Professional fees             165,037       165,037  
12/16/2009
   6000000486   Broadridge   A/P vendor payments             1,139       1,139  
12/16/2009
   6000000487   Scarpello and Huss Ltd   A/P vendor payments             150       150  
12/16/2009
   6000000488   Secretary of State   Filing Fee             11,300       11,300  
12/21/2009
   wire   Wells Fargo   Client Analysis Service Charge             2,670       2,670  
12/23/2009
   wire   Bowne of Los Angeles Inc   A/P vendor payments             640       640  
12/23/2009
   wire   Caldwell Law Firm   Professional fees             5,491       5,491  
12/23/2009
   wire   Solon Group, Inc.   Professional fees             7,293       7,293  
12/23/2009
   wire   FTI Consulting   Professional fees             10,270       10,270  
12/23/2009
   wire   Bocarsly Emden Cowan   Professional fees             16,601       16,601  
12/23/2009
   wire   Kurtzman Carson Consultants   Professional fees             29,639       29,639  
12/23/2009
   wire   Klee, Tuchin, Bogdanoff & Stern LLP   Professional fees             79,530       79,530  
12/23/2009
   wire   CRG Partners Group LLC   Professional fees             81,187       81,187  
12/23/2009
   wire   Stutman, Treister, and Glatt PC   Professional fees             138,780       138,780  
12/23/2009
   wire   Weiland, Golden, Smiley, Wang, Ekvall, and Strok LLP   Professional fees             159,958       159,958  
12/23/2009
   6000000489   Mellon Investor Services LLC   A/P vendor payments             8,135       8,135  
12/30/2009
   wire   Solon Group, Inc.   Professional fees             12,272       12,272  
12/30/2009
   wire   Patton Boggs LLP   Professional fees             116,871       116,871  
12/30/2009
   6000000490   LA Fine Arts   A/P vendor payments             330       330  
 
                              
 
          
TOTAL DISBURSEMENTS THIS PERIOD:
   $ —     $ 1,487,882     $ 1,487,882  
 
                              
 
*   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:
     12/31/2009     Balance on Statement:   $ 22,363  
     
 
                      
Plus deposits in transit (a):
 
            Deposit Date     Deposit Amount          
 
                               
 
                           
 
                               
 
                           
 
                               
 
                           
 
                               
 
                           
TOTAL DEPOSITS IN TRANSIT
                          $ —  
 
                             
Less Outstanding Checks (a):
 
    Check Number     Check Date     Check Amount          
 
     6000000451       7/29/2009       2,000          
 
     6000000485       12/2/2009       5,833          
 
     6000000487       12/16/2009       150          
 
     6000000488       12/16/2009       11,300          
 
     6000000490       12/30/2009       330          
TOTAL OUTSTANDING CHECKS:
                           $ 19,613  
 
                              
Bank statement Adjustments:
                                
 
                              
Explanation of Adjustments-
                                
 
ADJUSTED BANK BALANCE:
                           $ 2,750  
 
                              

Page 3 of 14

 

I. CASH RECEIPTS AND DISBURSEMENTS
B. (COMMERCIAL MONEY MARKET ACCOUNT)
               
1. TOTAL RECEIPTS PER ALL PRIOR REPORTS
             38,139,008
 
              
 
2. LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR REPORTS
             12,926,227
 
              
 
3. BEGINNING BALANCE:
             25,212,780
 
              
 
4. RECEIPTS DURING CURRENT PERIOD:
              
Transferred from General Account
     —        
 
              
Interest Income
     2,487        
 
              
 
TOTAL RECEIPTS THIS PERIOD:
             2,487
 
              
 
5. BALANCE:
             25,215,267
 
              
 
6. LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD
              
Transfers to Other DIP Accounts (from page 5)
             1,488,000
 
              
Disbursements (from page 5)
             3,140
 
              
 
7. ENDING BALANCE:
             23,724,127
 
              
 
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  
12/2/2009
   wire   Fremont General Corporation   Bank account transfer   $ 366,000             $ 366,000  
12/9/2009
   wire   Fremont General Corporation   Bank account transfer     264,000               264,000  
12/16/2009
   wire   Fremont General Corporation   Bank account transfer     189,000               189,000  
12/21/2009
   wire   Wells Fargo   Client Analysis Service Charge             3,140       3,140  
12/23/2009
   wire   Fremont General Corporation   Bank account transfer     540,000               540,000  
12/30/2009
   wire   Fremont General Corporation   Bank account transfer     129,000             $ 129,000  
 
                              
 
          
TOTAL DISBURSEMENTS THIS PERIOD:
   $ 1,488,000     $ 3,140     $ 1,491,140  
 
                              
 
*   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:
       12/31/2009     Balance on Statement:     $ 23,724,127  
 
                            
 
                                
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:
                           $ 23,724,127  
 
                              
 
*   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:                                                                        December 31, 2009
         
Gross Sales Subject to Sales Tax:
     —  
 
      
Total Wages Paid:
     —  
 
      
                     
    Total Post-Petition         Date Delinquent  
    Amounts Owing     Amount Delinquent   Amount Due  
Federal Withholding
     —     —     N/A  
State Withholding
     —     —     N/A  
FICA- Employer’s Share
     —     —     N/A  
FICA- Employee’s Share
     —     —     N/A  
Federal Unemployment
     —     —     N/A  
Sales and Use
     —     —     N/A  
Real Property
     —     —     N/A  
Other:
                    
 
                  
TOTAL:
     —     —        
 
                  

Page 7 of 14

 

I. D SUMMARY SCHEDULE OF CASH
     
ENDING BALANCES FOR THE PERIOD:
  12/31/2009
(Provide a copy of monthly account statements for each of the below)
                         
 
   General Account:       2,750          
 
                      
 
   Money Market Account:       23,724,127          
 
                      
 
   Payroll Account:  (1)      N/A          
 
                      
Other Accounts:
                        
 
                    
 
                      
 
                    
Other Monies:
                        
 
                    
 
   Petty Cash (from below):       —          
 
                    
TOTAL CASH AVAILABLE:
                     23,726,877  
 
                      
                         
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
     23,409       —       —
31 - 60 days
     —       —       —
61 - 90 days
     —               —
91 - 120 days
     —               —
Over 120 days
     6,273       118,819        
                 
TOTAL:
     29,682       118,819       —
                 
V. INSURANCE COVERAGE
                             
                Policy Expiration   Premium Paid
Name of Carrier   Insurance Type   Amount of Coverage   Date   Through (Date)
XL Specialty
   Directors & Officers     15,000,000       4/01/09-1/01/10       1/1/10  
Continental Casualty
   Excess D&O     15,000,000       4/01/09-1/01/10       1/1/10  
U.S. Specialty
   Excess D&O     15,000,000       4/01/09-1/01/10       1/1/10  
RSUI Indemnity
   Excess D&O     15,000,000       4/01/09-1/01/10       1/1/10  
Allied World Natl
   Excess D&O     10,000,000       4/01/09-1/01/10       1/1/10  
U.S. Specialty
   Excess D&O     10,000,000       4/01/09-1/01/10       1/1/10  
Liberty Mutual
   Excess D&O     10,000,000       4/01/09-1/01/10       1/1/10  
Navigators Ins.
   Excess D&O     10,000,000       4/01/09-1/01/10       1/1/10  
Westchester Surplus
   Excess D&O     10,000,000       4/01/09-1/01/10       1/1/10  
Platte River
   Excess D&O     10,000,000       4/01/09-1/01/10       1/1/10  
Scottsdale Ins.
   Excess D&O     5,000,000       4/01/09-1/01/10       1/1/10  
XL Specialty
   Run-off D&O     20,000,000       1/01/07-1/01/14       1/1/14  
Continental Casualty
   Run-off D&O     15,000,000       1/01/07-1/01/14       1/1/14  
RSUI Indemnity
   Run-off D&O     15,000,000       1/01/07-1/01/14       1/1/14  
New Mkts Undrwrtr
   Run-off D&O     10,000,000       1/01/07-1/01/14       1/1/14  
Platte River
   Run-off D&O     10,000,000       1/01/07-1/01/14       1/1/14  
St. Paul Mercury
   Run-off D&O     10,000,000       1/01/07-1/01/14       1/1/14  
Federal Insurance
   Run-off D&O     10,000,000       1/01/07-1/01/14       1/1/14  
Liberty Mutual
   Run-off D&O     10,000,000       1/01/07-1/01/14       1/1/14  
Columbia Casualty
   Fiduciary Liability     10,000,000       4/01/09-1/01/10       1/1/10  
XL Specialty
   Excess Fiduciary Liability     10,000,000       4/01/09-1/01/10       1/1/10  
U.S. Specialty
   Excess Fiduciary Liability     10,000,000       4/01/09-1/01/10       1/1/10  
Navigators Ins.
   Excess Fiduciary Liability     10,000,000       4/01/09-1/01/10       1/1/10  
Allied World Natl
   Excess Fiduciary Liability     5,000,000       4/01/09-1/01/10       1/1/10  
Westchester Surplus
   Excess Fiduciary Liability     5,000,000       4/01/09-1/01/10       1/1/10  
XL Specialty
   Run-off Fiduciary     15,000,000       1/01/07-1/01/14       1/1/14  
Capital Indemnity
   Run-off Fiduciary     10,000,000       1/01/07-1/01/14       1/1/14  
Federal Insurance
   Run-off Fiduciary     10,000,000       1/01/07-1/01/14       1/1/14  
Houston Casualty
   Run-off Fiduciary     5,000,000       1/01/07-1/01/14       1/1/14  
National Union Fire
   Crime Coverage     15,000,000       4/01/09-1/01/10       1/1/10  
Zurich American
   Excess Crime Coverage     15,000,000       4/01/09-1/01/10       1/1/10  
Continental Ins.
   Excess Crime Coverage     10,000,000       4/01/09-1/01/10       1/1/10  
Federal Insurance
   Errors & Omissions     5,000,000       4/01/09-1/01/10       1/1/10  
U.S. Specialty
   Excess E&O     5,000,000       4/01/09-1/01/10       1/1/10  
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       —  
March 31, 2009
     3,442,105       10,400     15-Apr-2009     10,400       —  
June 30, 2009
     2,311,647       9,750     15-Jul-2009     9,750       —  
September 30, 2009
     2,677,616       9,749     21-Oct-2009     9,749       —  
December 31, 2009
     2,864,479       9,750               —       9,750  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
                                   
 
             55,250               45,500       9,750  
                                   

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  
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  
    12/31/09     6/19/08-12/31/09  
Sales/Revenue:
                
Net Sales/Revenue
   $ —     $ —  
 
            
Cost of Goods Sold:
                
Cost of Goods Sold (COGS)
     —       —  
 
            
Gross Profit
     —       —  
 
            
Other Operating Income (Itemize)
     —       —  
 
            
 
                
Operating Expenses:
                
Payroll — Insiders
     —       —  
 
            
Compensation — regular (intercompany allocation)
     110,149       2,371,901  
 
            
Compensation — group insurance
             —  
 
            
Compensation — 401(k)/ESOP/Incentive
     1,254       (1,696,996 )
 
            
Occupancy
     660       511,666  
 
            
Payroll Taxes
             —  
 
            
Other Taxes (Itemize) (1)
     (3,500,000 )     (3,500,000 )
 
            
Information systems
             39,722  
 
            
Advertising and promotion
             23,635  
 
            
Telecom
             (115 )
 
            
Travel
             2,670  
 
            
Printing and supplies
     2,125       34,332  
 
            
Postage
             (29,156 )
 
            
All other
     65,089       504,765  
 
            
Depreciation and Amortization
     287       23,266  
 
            
Rent Expense — Real Property
             —  
 
            
Lease Expense — Personal Property
             —  
 
            
Insurance
     163,259       3,002,175  
 
            
Miscellaneous Operating Expenses (Itemize)
     —       —  
 
            
Total Operating Expenses
     (3,157,177 )     1,287,865  
 
            
 
Net Gain/(Loss) from Operations
     3,157,177       (1,287,865 )
 
            
 
                
Non-Operating Income:
                
Interest Income
     2,488       232,778  
 
            
Net Gain on Sale of Assets (Itemize)
             —  
 
            
Other — Equity in Earnings of Subsidiaries (2)
     42,374,820       158,045,168  
 
            
Other (Itemize) — SERP
     —       (75,276 )
 
            
Total Non-Operating income
     42,377,308       158,202,670  
 
            
 
                
Non-Operating Expenses:
                
Interest Expense (3)
     23,914       440,018  
 
            
Legal and Professional (Itemize) (4)
     1,062,523       16,399,224  
 
            
Other (Itemize)
     —       —  
 
            
Total Non-Operating Expenses
     1,086,437       16,839,242  
 
            
 
                
NET INCOME/(LOSS)
   $ 44,448,048     $ 140,075,563  
 
            
 
Notes:
 
(1)   Reflects (post-petition) accrual of the estimated income tax receivable attributable to FGC as a result of the anticipated carryback of the 2008 consolidated net operating loss in accordance with the expanded carryback provisions included in the Worker, Homeownership and Business Assistance Act of 2009 (H.R. 3548) that was signed into law on November 6, 2009.
 
(2)   Reflects the net impact of year end adjustments to the income tax receivable/payable accounts and other loss contingency reserves at the subsidiary level.
 
(3)   Represents amortization of capitalized debt issuance costs.
 
(4)   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
   $ 23,726,877          
 
              
Accounts Receivable
     118,819          
 
              
Intercompany Receivable
     611,991          
 
              
Prepaid Expenses
     2,916,806          
 
              
Other (Itemize) — SERP / EBP Accounts & Other Benefit Accounts
     12,046,837          
 
              
Other (Itemize) — Investment — FG Financing
     3,092,777          
 
              
Other (Itemize) — Income Tax Receivable (1)
     3,500,000          
 
            
Total Current Assets
             46,014,107  
 
              
Property, Plant, and Equipment
     168,996          
 
              
Accumulated Depreciation/Depletion
     (17,495 )        
 
            
Net Property, Plant, and Equipment
             151,501  
 
              
 
                
Other Assets (Net of Amortization):
                
Other (Itemize) — GSOP Merrill Lynch Acct. xxx-37M01
     14,930          
 
              
Investment in Subsidiary
     442,628,193          
 
              
 
                
Total Other Assets
             442,643,123  
 
              
 
                
TOTAL ASSETS
           $ 488,808,731  
 
              
 
                
LIABILITIES
                
Post-petition Liabilities:
                
Accounts Payable
     29,682          
 
              
Accruals (2)
     2,939,443          
 
              
Taxes Payable
     —          
 
              
Professional fees
     —          
 
              
Accrued Interest Payable
     —          
 
              
Other (3)
     11,190,989          
 
            
Total Post-petition Liabilities
             14,160,114  
 
              
 
                
Pre-petition Liabilities / Liabilities Subject to Compromise:
                
 
            
Priority Liabilities
     —          
 
              
Unsecured Liabilities (4)
     375,004,770          
 
            
Total Pre-petition Liabilities
             375,004,770  
 
              
 
                
TOTAL LIABILITIES
             389,164,884  
 
              
 
                
EQUITY:
                
Pre-petition Owners’ Equity (5)
     (50,669,441 )        
 
              
Post-petition Profit/(Loss)
     140,075,563          
 
              
Direct Charges to Equity
     10,237,725          
 
            
TOTAL EQUITY
             99,643,847  
 
              
 
                
TOTAL LIABILITIES & EQUITY
           $ 488,808,731  
 
              
 
Notes:
 
(1)   Reflects (post-petition) estimated income tax receivable attributable to FGC as a result of the anticipated carryback of the 2008 consolidated net operating loss in accordance with the expanded carryback provisions included in the Worker, Homeownership and Business Assistance Act of 2009 (H.R. 3548) that was signed into law on November 6, 2009.
 
(2)   Includes accruals (estimates) by the Debtor for financial statement presentation (GAAP) purposes.
 
(3)   Includes an accrued post-petition intercompany payable to Fremont Reorganizing Corporation of $10.7 million.
 
(4)   Includes the accruals (estimates) recorded by the Debtor for financial statement presentation (GAAP) purposes, including an accrual for litigation settlements totaling $36.5 million primarily related to the following matters and related proofs of claim: The Bank of New York v. Fremont General Corporation; Enron Creditors Recovery Corp., et al. v. J.P. Morgan Securities, et al.; California Insurance Commissioner v. Rampino, et al.; and California Insurance Commissioner v. Fremont General Corporation, et al. These litigation settlements were approved, pursuant to Federal Rule of Bankruptcy Procedure 9019, by the Bankruptcy Court in 2009, and each settlement resulted in deemed allowed general unsecured claims against the Debtor’s bankruptcy estate in varying amounts.
 
(5)   Reflects the changes in the Pre-petition Liabilities/Liabilities Subject to Compromise, as further described in footnote 3 above, and year end adjustments to income tax payable.

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          
 
            
                 
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.
During the reporting period, six (6) separate groups filed proposed chapter 11 plans and related disclosure statements, certain of which were revised throughout the reporting period [see, e.g., Docket Nos. 1278-1283, 1285-1288, 1292, 1298-1304, 1330, 1334-1336, 1341-1342 & 1366-1368]. Hearings were scheduled before the Bankruptcy Court for January 8 and 15, 2010, concerning the “adequacy” of those filed disclosure statements and related plan solicitation matters.
                
 
                
4.  Describe potential future developments which may have a significant impact on the case:
At a hearing on January 8, 2010, the Bankruptcy Court approved five (5) of the filed disclosure statements, with certain modifications as noted on the record. Based upon the current schedule, the Debtor anticipates that the solicitation process will begin as to those five competing plans in January 2010, with confirmation hearings set to begin in March 2010.
                
 
                
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 14 of 14

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