ELAH Holdings, Inc. - FORM 8-K - EX-99.1 - April 16, 2010

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8-K - FORM 8-K - ELAH Holdings, Inc.v55790e8vk.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:   22  
 
 
                         
 
 
  Debtor           For the Month Ending:   31-Mar-10  
 
 
                         
                 
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT — MASTER DEMAND ACCOUNT)
                         
1.   TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS (1)     30,185,047  
 
                       
 
                        
2.   LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS     30,180,326  
 
                       
 
                        
3.   BEGINNING BALANCE:     4,722  
 
                       
 
                        
4.   RECEIPTS DURING CURRENT PERIOD:        
    Accounts Receivable — Post-filing     —          
 
                       
    Accounts Receivable — Pre-filing     —          
 
                       
 
                       
 
  Other (Specify)   Transfers from Money Market Acct     1,965,000          
 
                       
 
  Other (Specify)   Insurance Proceeds — Legal Expense Reimbursement     473,036          
 
                       
 
  Other (Specify)   Proponent Reimbursement for Solicitation Costs     75,978          
 
                       
 
  Other (Specify)   Proceeds from Sale of Domain Name     34,970          
 
                       
 
                        
    TOTAL RECEIPTS THIS PERIOD:     2,548,984  
 
                       
 
                        
5.   BALANCE:     2,553,706  
 
                       
 
                        
6.   LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD        
    Transfers to Other DIP Accounts (from page 2)     —  
 
                       
    Disbursements (from page 2)     2,508,151  
 
                        
 
                       
7.   ENDING BALANCE:     45,555  
 
                       
 
                        
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.
 
IA

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  
3/3/2010
   wire   Bowne of Los Angeles Inc   A/P vendor payments           $ 640     $ 640  
3/3/2010
   wire   Ernst & Young   Professional fees             664       664  
3/3/2010
   wire   Robert Shackleton   Director Fees             5,833       5,833  
3/3/2010
   wire   Barney Northcote   Director Fees             5,833       5,833  
3/3/2010
   wire   Mark Schaffer   Director Fees             5,833       5,833  
3/3/2010
   wire   David S. Depillo   Director Fees             5,833       5,833  
3/3/2010
   wire   KPMG Corporate Finance LLC   Professional fees             25,000       25,000  
3/3/2010
   6000000505   Broadridge   A/P vendor payments             447       447  
3/3/2010
   6000000506   Iron Mountain Records Mgmt Inc   A/P vendor payments             1,919       1,919  
3/3/2010
   6000000507   LA Fine Arts   A/P vendor payments             330       330  
3/3/2010
   6000000508   Mellon Investor Services LLC   Director Fees             2,843       2,843  
3/3/2010
   6000000509   Robin J Lee   Consulting Fee — Retirement Plan Litigation             1,818       1,818  
3/3/2010
   6000000510   Stephen H. Gordon   Director Fees             5,833       5,833  
3/10/2010
   wire   Epstein, Becker, & Green P.C.   Professional fees             679       679  
3/10/2010
   wire   CRG Partners Group LLC   Professional fees             23,277       23,277  
3/10/2010
   wire   Patton Boggs LLP   Professional fees             130,703       130,703  
3/10/2010
   wire   Weiland, Golden, Smiley, Wang, Ekvall, and Strok LLP   Professional fees             185,888       185,888  
3/10/2010
   wire   FTI Consulting   Professional fees             290,632       290,632  
3/10/2010
   wire   Stutman, Treister, and Glatt PC   Professional fees             357,623       357,623  
3/10/2010
   wire   Klee, Tuchin, Bogdanoff & Stern LLP   Professional fees             365,723       365,723  
3/17/2010
   wire   Ernst & Young   Professional fees             2,651       2,651  
3/17/2010
   wire   Bocarsly Emden Cowan   Professional fees             3,238       3,238  
3/17/2010
   wire   Caldwell Law Firm   Professional fees             6,069       6,069  
3/17/2010
   wire   Solon Group, Inc.   Professional fees             18,902       18,902  
3/17/2010
   wire   CRG Partners Group LLC   Professional fees             34,293       34,293  
3/17/2010
   wire   Klee, Tuchin, Bogdanoff & Stern LLP   Professional fees             129,935       129,935  
3/17/2010
   6000000511   Frank E Williams   OEC Member — Travel Expense Reimbursement             485       485  
3/17/2010
   6000000512   West Payment Center   A/P vendor payments             3,656       3,656  
3/22/2010
   wire   Wells Fargo   Client Analysis Service Charge             2,672       2,672  
3/24/2010
   wire   Bowne of Los Angeles Inc   A/P vendor payments             665       665  
3/24/2010
   wire   CRG Partners Group LLC   Professional fees             9,243       9,243  
3/24/2010
   wire   Weiland, Golden, Smiley, Wang, Ekvall, and Strok LLP   Professional fees             104,850       104,850  
3/24/2010
   wire   Stutman, Treister, and Glatt PC   Professional fees             161,653       161,653  
3/24/2010
   wire   Fremont General Corporation   Bank Account Transfer             196,000       196,000  
3/24/2010
   6000000513   Iron Mountain Records Mgmt Inc   A/P vendor payments             1,358       1,358  
3/31/2010
   wire   Kurtzman Carson Consultants   Professional Fees (Solicitation Costs)             414,800       414,800  
3/31/2010
   6000000514   LA Fine Arts   A/P vendor payments             330       330  
 
                            
 
           TOTAL DISBURSEMENTS THIS
PERIOD:		   $ —     $ 2,508,151     $ 2,508,151  
 
                              
 
*   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.
IA p2

Page 2 of 14

 

GENERAL ACCOUNT
BANK RECONCILIATION
                             
 
  Bank statement Date:   3/31/2010   Balance on Statement:   $ 57,552  
 
                       
 
                            
Plus deposits in transit (a):                    
 
          Deposit Date   Deposit Amount        
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
TOTAL DEPOSITS IN TRANSIT               $ —  
 
                           
 
                            
Less Outstanding Checks (a):                    
 
  Check Number   Check Date   Check Amount        
 
                           
 
      6000000502   2/3/2010       5,833        
 
                           
 
       6000000510   3/3/2010       5,833        
 
                           
 
       6000000514   3/31/2010       330        
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
 
                           
 
                            
TOTAL OUTSTANDING CHECKS:               $ 11,997  
 
                           
Bank statement Adjustments:                    
 
                           
Explanation of Adjustments-                    
 
                           
 
 
 
                            
 
                           
ADJUSTED BANK BALANCE:               $ 45,555  
 
                           
IA p3

Page 3 of 14

 

I. CASH RECEIPTS AND DISBURSEMENTS
B. (COMMERCIAL MONEY MARKET ACCOUNT)
                         
1.   TOTAL RECEIPTS PER ALL PRIOR REPORTS     38,537,007  
 
                      
 
                        
2.   LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR REPORTS     15,809,621  
 
                      
 
                        
3.   BEGINNING BALANCE:     22,727,385  
 
                      
 
                        
4.   RECEIPTS DURING CURRENT PERIOD:        
    Transferred from General Account       196,000          
 
                       
    Interest Income     2,209          
 
                       
 
 
                      
    TOTAL RECEIPTS THIS PERIOD:     198,209  
 
                      
 
                        
 
                      
5.   BALANCE:     22,925,594  
 
                      
 
                        
 
                      
6.   LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD        
 
                      
    Transfers to Other DIP Accounts (from page 5)     1,965,000  
 
                      
    Disbursements (from page 5)     3,160  
 
                        
 
                      
 
                      
7.   ENDING BALANCE:     20,957,434  
 
                      
 
                        
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  
IB

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  
3/3/2010
   wire   Fremont General Corporation   Bank account transfer   $ 63,000             $ 63,000  
3/10/2010
   wire   Fremont General Corporation   Bank account transfer     1,320,000               1,320,000  
3/17/2010
   wire   Fremont General Corporation   Bank account transfer     202,000               202,000  
3/22/2010
   wire   Wells Fargo   Client Analysis Service Charge             3,160       3,160  
3/31/2010
   wire   Fremont General Corporation   Bank account transfer     380,000               380,000  
 
                           
 
          TOTAL DISBURSEMENTS THIS PERIOD:   $ 1,965,000     $ 3,160     $ 1,968,160  
 
                           
 
*   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.
IB p2

Page 5 of 14

 

COMMERCIAL MONEY MARKET ACCOUNT
BANK RECONCILIATION
                     
 
  Bank statement Date:   3/31/2010   Balance on Statement:   $ 20,957,434  
 
                 
 
                    
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:
            $ 20,957,434  
 
                 
 
*   It is acceptable to replace this form with a similar form
 
**   Please attach a detailed explanation of any bank statement adjustment
IB p3

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:
      March 31, 2010    
    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:
     —       —          
 
                            
II - III

Page 7 of 14

 

I. D SUMMARY SCHEDULE OF CASH
         
ENDING BALANCES FOR THE PERIOD:
     3/31/2010  
(Provide a copy of monthly account statements for each of the below)
                         
     
General Account:
       45,555          
   
 
                  
     
Money Market Account:
       20,957,434          
       
 
              
     
Payroll Account:
  (1)     N/A          
 
Other Accounts:
                        
 
                  
 
                        
 
                  
 
                        
 
                  
Other Monies:
                        
 
                  
 
     Petty Cash (from below):       —          
 
                      
 
                        
TOTAL CASH AVAILABLE:
                     21,002,989  
 
                      
 
Petty Cash Transactions:                    
Date   Purpose     Amount          
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
 
                  
 
                        
TOTAL PETTY CASH TRANSACTIONS:
     N/A       —  
 
                      
 
(1)   The Debtor’s payroll account has been closed.
 
ID  

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
     —       —       46,956  
31 - 60 days
     —       —       —  
61 - 90 days
     —       —       —  
91 - 120 days
     —       —       —  
Over 120 days
     6,273       118,819       —  
 
                  
TOTAL:
     6,273       118,819       46,956  
 
                  
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     4/01/09-4/01/10   4/1/10
Continental Casualty
   Excess D&O     15,000,000     4/01/09-4/01/10   4/1/10
U.S. Specialty
   Excess D&O     15,000,000     4/01/09-4/01/10   4/1/10
RSUI Indemnity
   Excess D&O     15,000,000     4/01/09-4/01/10   4/1/10
Allied World Natl
   Excess D&O     10,000,000     4/01/09-4/01/10   4/1/10
U.S. Specialty
   Excess D&O     10,000,000     4/01/09-4/01/10   4/1/10
Liberty Mutual
   Excess D&O     10,000,000     4/01/09-4/01/10   4/1/10
Navigators Ins.
   Excess D&O     10,000,000     4/01/09-4/01/10   4/1/10
Westchester Surplus
   Excess D&O     10,000,000     4/01/09-4/01/10   4/1/10
Platte River
   Excess D&O     10,000,000     4/01/09-4/01/10   4/1/10
Scottsdale Ins.
   Excess D&O     5,000,000     4/01/09-4/01/10   4/1/10
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     4/01/09-4/01/10   4/1/10
XL Specialty
   Excess Fiduciary Liability     10,000,000     4/01/09-4/01/10   4/1/10
U.S. Specialty
   Excess Fiduciary Liability     10,000,000     4/01/09-4/01/10   4/1/10
Navigators Ins.
   Excess Fiduciary Liability     10,000,000     4/01/09-4/01/10   4/1/10
Allied World Natl
   Excess Fiduciary Liability     5,000,000     4/01/09-4/01/10   4/1/10
Westchester Surplus
   Excess Fiduciary Liability     5,000,000     4/01/09-4/01/10   4/1/10
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     4/01/09-4/01/10   4/1/10
Zurich American
   Excess Crime Coverage     15,000,000     4/01/09-4/01/10   4/1/10
Continental Ins.
   Excess Crime Coverage     10,000,000     4/01/09-4/01/10   4/1/10
Federal Insurance
   Commercial Automobile     1,000,000     1/01/09-1/01/11   1/1/11
Federal Insurance
   Commercial Excess and Umbrella     5,000,000     1/01/09-1/01/11   1/1/11
Great American
   Excess Umbrella     20,000,000     1/01/09-1/01/11   1/1/11
Federal Insurance
   Commercial Package     14,499,247     1/01/09-1/01/11   1/1/11
State Compensation Fund of CA
   Workers Compensation     1,000,000     1/01/09-1/01/11   1/1/11
IV, V, VI

Page 9 of 14

 

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)
                                     
    Total Disbursements                         Quarterly Fees  
Quarterly Period Ending (Date)   (during Quarter)     Quarterly Fees     Date Paid   Amount Paid     Still Owing  
June 30, 2008
     0       325     22-Aug-2008     325       —  
June 30, 2008
     0       1     1-Oct-2008     1       —  
September 30, 2008
     851,493       4,875     19-Nov-2008     4,875       —  
December 31, 2008
     3,817,827       10,400     21-Jan-2009     10,400       —  
March 31, 2009
     3,442,105       10,400     15-Apr-2009     10,400       —  
June 30, 2009
     2,311,647       9,750     15-Jul-2009     9,750       —  
September 30, 2009
     2,677,616       9,749     21-Oct-2009     9,749       —  
December 31, 2009
     2,864,479       9,750     27-Jan-2010     9,750       —  
March 31, 2010
     4,373,732       10,400                   10,400  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                                 —  
 
                              
 
             65,650           55,250       10,400  
 
                              
IV, V, VI

Page 10 of 14

 

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS
                         
    Date of Order              
    Authorizing     Authorized Gross     Gross Compensation Paid  
Name of Insider   Compensation     Compensation     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
Name of Insider   Compensation   Description   During the 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  
VII - VIII

Page 11 of 14

 

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
                 
    Current Month     Cumulative Post-Petition  
    3/31/10     6/19/08-3/31/10  
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)
     112,153       2,703,231  
Compensation — group insurance
             —  
Compensation — 401(k)/ESOP/Incentive
     629       (1,690,609 )
Occupancy
     2,018       517,068  
Payroll Taxes
             —  
Other Taxes (Itemize) (1)
             (3,500,000 )
Information systems
             39,722  
Advertising and promotion
             23,635  
Telecom
             (115 )
Travel
             2,670  
Printing and supplies
     665       38,377  
Postage
             (29,156 )
All other
     38,655       627,781  
Depreciation and Amortization
     287       24,127  
Rent Expense — Real Property
             —  
Lease Expense — Personal Property
             —  
Insurance
     249,569       3,750,882  
Miscellaneous Operating Expenses (Itemize)
     —       —  
Total Operating Expenses
     403,976       2,507,613  
 
                
Net Gain/(Loss) from Operations
     (403,976 )     (2,507,613 )
 
                
Non-Operating Income:
                
Interest Income
     2,209       239,501  
Net Gain on Sale of Assets (Itemize)
             —  
Other — Equity in Earnings of Subsidiaries
     (1,751,013 )     154,535,997  
Other (Itemize) — SERP
     34,970       (40,306 )
Total Non-Operating income
     (1,713,834 )     154,735,192  
 
                
Non-Operating Expenses:
                
Interest Expense (2)
     23,914       511,760  
Legal and Professional (Itemize) (3)
     1,124,493       19,202,407  
Other (Itemize)
     —       —  
Total Non-Operating Expenses
     1,148,407       19,714,167  
 
            
NET INCOME/(LOSS)
   $ (3,266,217 )   $ 132,513,412  
 
            
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)   Represents amortization of capitalized debt issuance costs.
 
(3)   Represents professional fee accruals (estimates) by the Debtor for financial statement (GAAP) purposes.
IX

Page 12 of 14

 

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)
                 
    Current Month End          
ASSETS
                
Current Assets:
                
Unrestricted Cash
   $ 21,002,989          
Accounts Receivable
     165,775          
Intercompany Receivable
     613,866          
Prepaid Expenses
     2,892,108          
Other (Itemize) — SERP / EBP Accounts & Other Benefit Accounts
     12,111,373          
Other (Itemize) — Investment — FG Financing
     3,092,777          
Other (Itemize) — Income Tax Receivable (1)
     3,500,000          
Total Current Assets
             43,378,888  
 
Property, Plant, and Equipment
     168,996          
Accumulated Depreciation/Depletion
     (18,356 )        
Net Property, Plant, and Equipment
             150,640  
 
Other Assets (Net of Amortization):
                
Other (Itemize) — GSOP Merrill Lynch Acct. xxx-37M01
     14,933          
Investment in Subsidiary
     439,119,022          
Total Other Assets
             439,133,955  
 
              
 
TOTAL ASSETS
           $ 482,663,483  
 
              
 
LIABILITIES
                
Post-petition Liabilities:
                
Accounts Payable
     6,273          
Accruals (2)
     2,201,657          
Taxes Payable
     —          
Professional fees
     —          
Accrued Interest Payable
     —          
Other (3)
     13,304,552          
Total Post-petition Liabilities
             15,512,482  
 
Pre-petition Liabilities / Liabilities Subject to Compromise:
                
Priority Liabilities
     —          
Unsecured Liabilities (4)
     375,074,740          
Total Pre-petition Liabilities
             375,074,740  
 
TOTAL LIABILITIES
             390,587,222  
 
EQUITY:
                
Pre-petition Owners’ Equity (5)
     (50,674,876 )        
Post-petition Profit/(Loss)
     132,513,412          
Direct Charges to Equity
     10,237,725          
TOTAL EQUITY
             92,076,261  
 
              
 
TOTAL LIABILITIES & EQUITY
           $ 482,663,483  
 
              
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 $12.8 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 4 above, and adjustments to recorded income tax payable at 12/31/2009.
X

Page 13 of 14

 

XI. QUESTIONNAIRE
1.   Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below: No
þ		 Yes
o
     
 
2.   Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below: No
þ		 Yes
o
     
 
3.   State what progress was made during the reporting period toward filing a plan of reorganization.
 
    Confirmation hearings regarding the four competing chapter 11 plans began on March 12, 2010, and continued throughout the month of March, along with significant related briefing by numerous parties in interest.
 
4.   Describe potential future developments which may have a significant impact on the case:
 
    Confirmation hearings regarding the four competing plans are scheduled to continue throughout April 2010, with a series of hearings scheduled on April 27-30, and various related dates established pursuant to the Bankruptcy Court’s rulings at prior hearings.
 
5.   Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
    None.
 
     
 
6.   Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below. No
þ		 Yes
o
     
 
I,    Thea Stuedli, Chief Financial Officer of Fremont General Corporation
declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

XI

Page 14 of 14

ELAH Holdings, Inc. Reports