ELAH Holdings, Inc. - FORM 8-K - EX-99.1 - June 1, 2010

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8-K - FORM 8-K - ELAH Holdings, Inc.v56365e8vk.htm
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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:   23
 
    
Debtor
      For the Month Ending:   30-Apr-10
 
    
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT — MASTER DEMAND ACCOUNT)
                                 
  1.     TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS (1)     32,734,031  
       
 
                      
       
 
                        
  2.     LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS             32,688,477  
       
 
                      
       
 
                        
  3.     BEGINNING BALANCE:             45,555  
       
 
                      
       
 
                        
  4.     RECEIPTS DURING CURRENT PERIOD:                
        Accounts Receivable — Post-filing             —  
       
 
                      
        Accounts Receivable — Pre-filing             —  
       
 
                      
       
Other (Specify)
   Transfers from Money Market Acct             873,000  
       
 
                      
       
Other (Specify)
   Proponent Reimbursement for Solicitation Costs             46,956  
       
 
                      
       
 
                        
        TOTAL RECEIPTS THIS PERIOD:             919,956  
       
 
                      
       
 
                        
  5.    
BALANCE:
                     965,511  
       
 
                      
       
 
                        
  6.     LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD                
        Transfers to Other DIP Accounts (from page 2)             34,000  
       
 
                      
        Disbursements (from page 2)             926,123  
       
 
                      
       
 
                        
  7.    
ENDING BALANCE:
                     5,388  
       
 
                      
       
 
                        
  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 mm/dd/yyyy     Check Number     Payee or DIP account   Purpose     *Amount Transferred     **Amount Disbursed     Amount  
  4/7/2010     wire  
Bowne of Los Angeles Inc
   A/P vendor payments           $ 355     $ 355  
               
 
                            
  4/7/2010     wire  
Caldwell Law Firm
   Professional fees             3,194       3,194  
               
 
                            
  4/7/2010     wire  
Barney Northcote
   Director Fees             5,833       5,833  
               
 
                            
  4/7/2010     wire  
Robert Shackleton
   Director Fees             5,833       5,833  
               
 
                            
  4/7/2010     wire  
David S. Depillo
   Director Fees             5,833       5,833  
               
 
                            
  4/7/2010     wire  
Mark Schaffer
   Director Fees             5,833       5,833  
               
 
                            
  4/7/2010     wire  
Fremont General Corporation
   Bank Account Transfer     13,000               13,000  
               
 
                            
  4/7/2010     6000000515    
Broadridge
   A/P vendor payments             625       625  
               
 
                            
  4/7/2010     6000000516    
Stephen H. Gordon
   Director Fees             5,833       5,833  
               
 
                            
  4/14/2010     wire  
Ernst & Young
   Professional Fees             550       550  
               
 
                            
  4/14/2010     wire  
Patton Boggs LLP
   Professional Fees             32,031       32,031  
               
 
                            
  4/14/2010     wire  
FTI Consulting
   Professional Fees             60,507       60,507  
               
 
                            
  4/14/2010     6000000517    
Mellon Investor Services LLC
   A/P vendor payments             2,870       2,870  
               
 
                            
  4/14/2010     6000000518    
Merrill Lynch Pierce Fenner and Smith Inc.
   A/P vendor payments             7,000       7,000  
               
 
                            
  4/14/2010     6000000519    
US Trustee
   US Trustee Quarterly Fee             10,400       10,400  
               
 
                            
  4/14/2010     6000000520    
William M. Stern
   OEC Member - Travel Expense Reimbursement             764       764  
               
 
                            
  4/20/2010     wire  
Wells Fargo
   Client Analysis Service Charge             2,743       2,743  
               
 
                            
  4/20/2010     6000000521    
William Holmes
   OEC Member - Travel Expense Reimbursement             1,152       1,152  
               
 
                            
  4/21/2010     wire  
Stutman, Treister, and Glatt PC
   Professional fees             157,701       157,701  
               
 
                            
  4/21/2010     wire  
Klee, Tuchin, Bogdanoff & Stern LLP
   Professional fees             246,113       246,113  
               
 
                            
  4/21/2010     6000000522    
West Payment Center
   A/P vendor payments             3,656       3,656  
               
 
                            
  4/22/2010     wire  
Fremont General Corporation
   Bank Account Transfer     21,000               21,000  
               
 
                            
  4/28/2010     wire  
Caldwell Law Firm
   Professional fees             1,552       1,552  
               
 
                            
  4/28/2010     wire  
Kurtzman Carson Consultants
   Professional fees             2,076       2,076  
               
 
                            
  4/28/2010     wire  
Solon Group, Inc.
   Professional fees             7,740       7,740  
               
 
                            
  4/28/2010     wire  
FTI Consulting
   Professional fees             37,422       37,422  
               
 
                            
  4/28/2010     wire  
CRG Partners Group LLC
   Professional fees             38,531       38,531  
               
 
                            
  4/28/2010     wire  
Patton Boggs LLP
   Professional fees             279,645       279,645  
               
 
                            
  4/28/2010     wire  
LA Fine Arts
   A/P vendor payments             330       330  
               
 
                            
               
 
   TOTAL DISBURSEMENTS THIS PERIOD:   $ 34,000     $ 926,123     $ 960,123  
               
 
                          
 
*   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:
  4/30/2010   Balance on Statement:   $ 5,388  
 
               
 
                
Plus deposits in transit (a):            
 
                
 
  Deposit Date   Deposit Amount        
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
TOTAL DEPOSITS IN TRANSIT       $ —  
 
               
Less Outstanding Checks (a):
                 
Check Number   Check Date   Check Amount        
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
 
                
 
               
TOTAL OUTSTANDING CHECKS:       $ —  
 
               
 
                
Bank statement Adjustments:            
 
               
Explanation of Adjustments-            
 
  
 
                
 
                
 
  
 
                
 
               
ADJUSTED BANK BALANCE:       $ 5,388  
 
               

Page 3 of 14

 

I. CASH RECEIPTS AND DISBURSEMENTS
B. (COMMERCIAL MONEY MARKET ACCOUNT)
                 
1. TOTAL RECEIPTS PER ALL PRIOR REPORTS
             38,735,216  
 
              
 
                
2. LESS: TOTAL TRANSFERS AND DISBURSEMENTS PER ALL PRIOR REPORTS
         17,777,781  
 
              
 
                
3. BEGINNING BALANCE:
             20,957,434  
 
              
 
                
4. RECEIPTS DURING CURRENT PERIOD:
                
Transferred from General Account
     34,000          
 
              
Interest Income
     2,046          
 
              
 
                
 
              
TOTAL RECEIPTS THIS PERIOD:
             36,046  
 
              
 
                
 
              
5. BALANCE:
             20,993,480  
 
              
 
                
6. LESS: TOTAL TRANSFERS AND DISBURSEMENTS DURING CURRENT PERIOD
          
 
              
Transfers to Other DIP Accounts (from page 5)
             873,000  
 
              
Disbursements (from page 5)
             2,999  
 
              
 
                
 
              
7. ENDING BALANCE:
             20,117,481  
 
              
 
                
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 mm/dd/yyyy   Check Number     Payee     Purpose     *Amount Transferred     **Amount Disbursed     Amount  
4/14/2010
   wire   Fremont General Corporation   Bank account transfer   $ 115,000             $ 115,000  
4/20/2010
   wire   Wells Fargo   Client Analysis Service Charge             2,999       2,999  
4/21/2010
   wire   Fremont General Corporation   Bank account transfer     390,000               390,000  
4/28/2010
   wire   Fremont General Corporation   Bank account transfer     368,000               368,000  
 
                                          
 
                   TOTAL DISBURSEMENTS THIS PERIOD:   $ 873,000     $ 2,999     $ 875,999  
 
                                          
 
*   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:
  4/30/2010   Balance on Statement:   $ 20,117,481  
 
               
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:       $ 20,117,481  
 
               
 
*   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       Post-Petition payments    
Creditor, Lessor, Etc.   Payments (Mo/Qtr)   Amount of Payment   not made (Number)   Total Due
 
                  
—
  —   —   —   —
 
                
 
               
 
          TOTAL DUE:   —
 
               
III. TAX LIABILITIES
     
FOR THE REPORTING PERIOD:
  April 30, 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:
  —   —    
 
           

Page 7 of 14

 

I. D SUMMARY SCHEDULE OF CASH
                         
ENDING BALANCES FOR THE PERIOD:
 4/30/2010                
(Provide a copy of monthly account statements for each of the below)
 
                        
 
   General Account:
     5,388          
 
                      
 
   Money Market Account:
     20,117,481          
 
                      
 
   Payroll Account: (1)    N/A          
 
                      
Other Accounts:
                        
 
                    
 
                        
 
                    
 
                        
 
                    
Other Monies:
                        
 
                    
 
                        
 
   Petty Cash (from below):
     —          
 
                      
 
                        
 
                      
TOTAL CASH AVAILABLE:
                 20,122,870  
 
                      
 
                        
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
     3,456       —       —  
31 - 60 days
     1,358       —       —  
61 - 90 days
     —       —       —  
91 - 120 days
     —       —       —  
Over 120 days
     6,273       118,819       —  
 
                  
TOTAL:
     11,087       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       4/01/09-7/01/10       7/1/10  
Continental Casualty
   Excess D&O     15,000,000       4/01/09-7/01/10       7/1/10  
U.S. Specialty
   Excess D&O     15,000,000       4/01/09-7/01/10       7/1/10  
RSUI Indemnity
   Excess D&O     15,000,000       4/01/09-7/01/10       7/1/10  
Allied World Natl
   Excess D&O     10,000,000       4/01/09-7/01/10       7/1/10  
U.S. Specialty
   Excess D&O     10,000,000       4/01/09-7/01/10       7/1/10  
Liberty Mutual
   Excess D&O     10,000,000       4/01/09-7/01/10       7/1/10  
Navigators Ins.
   Excess D&O     10,000,000       4/01/09-7/01/10       7/1/10  
Westchester Surplus
   Excess D&O     10,000,000       4/01/09-7/01/10       7/1/10  
Platte River
   Excess D&O     10,000,000       4/01/09-7/01/10       7/1/10  
Scottsdale Ins.
   Excess D&O     5,000,000       4/01/09-7/01/10       7/1/10  
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       4/01/09-7/01/10       7/1/10  
XL Specialty
   Excess Fiduciary Liability     10,000,000       4/01/09-7/01/10       7/1/10  
U.S. Specialty
   Excess Fiduciary Liability     10,000,000       4/01/09-7/01/10       7/1/10  
Navigators Ins.
   Excess Fiduciary Liability     10,000,000       4/01/09-7/01/10       7/1/10  
Allied World Natl
   Excess Fiduciary Liability     5,000,000       4/01/09-7/01/10       7/1/10  
Westchester Surplus
   Excess Fiduciary Liability     5,000,000       4/01/09-7/01/10       7/1/10  
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  
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  

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     27-Jan-2010     9,750       —  
March 31, 2010
     4,373,732       10,400     14-Apr-2010     10,400       —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                     —  
 
                                  
 
             65,650               65,650       —  
 
                                  

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  
    4/30/10     6/19/08-4/30/10  
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)
     116,841       2,820,072  
 
            
Compensation- group insurance
             —  
 
            
Compensation- 401(k)/ESOP/Incentive
     7,629       (1,682,980 )
 
            
Occupancy
     1,688       518,756  
 
            
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
     970       39,347  
 
            
Postage
             (29,156 )
 
            
All other
     41,434       669,215  
 
            
Depreciation and Amortization
     287       24,414  
 
            
Rent Expense — Real Property
             —  
 
            
Lease Expense — Personal Property
             —  
 
            
Insurance
     249,569       4,000,451  
 
            
Miscellaneous Operating Expenses (Itemize)
     —       —  
 
            
Total Operating Expenses
     418,418       2,926,031  
 
            
 
Net Gain/(Loss) from Operations
     (418,418 )     (2,926,031 )
 
            
 
                
Non-Operating Income:
                
Interest Income
     2,046       241,547  
 
            
Net Gain on Sale of Assets (Itemize)
             —  
 
            
Other — Equity in Earnings of Subsidiaries
     (1,373,529 )     153,162,468  
 
            
Other (Itemize) — SERP
     —       (40,306 )
 
            
Total Non-Operating income
     (1,371,483 )     153,363,709  
 
            
 
                
Non-Operating Expenses:
                
Interest Expense (2)
     23,914       535,674  
 
            
Legal and Professional (Itemize) (3)
     631,332       19,833,739  
 
            
Other (Itemize)
     —       —  
 
            
Total Non-Operating Expenses
     655,246       20,369,413  
 
            
 
                
NET INCOME/(LOSS)
   $ (2,445,147 )   $ 130,068,265  
 
            
 
    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.

Page 12 of 14

 

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)
                 
    Current Month End          
ASSETS
                
Current Assets:
                
 
              
Unrestricted Cash
   $ 20,122,870          
 
              
Accounts Receivable
     118,819          
 
              
Intercompany Receivable
     613,866          
 
              
Prepaid Expenses
     2,881,579          
 
              
Other (Itemize)- SERP / EBP Accounts & Other Benefit Accounts
     12,123,684          
 
              
Other (Itemize) — Investment — FG Financing
     3,092,777          
 
              
Other (Itemize)- Income Tax Receivable (1)
     3,500,000          
 
            
Total Current Assets
             42,453,595  
 
              
 
                
Property, Plant, and Equipment
     168,996          
 
              
Accumulated Depreciation/Depletion
     (18,643 )        
 
            
Net Property, Plant, and Equipment
             150,353  
 
              
 
                
Other Assets (Net of Amortization):
                
 
              
Other (Itemize) — GSOP Merrill Lynch Acct. xxx-37M01
     14,933          
 
              
Investment in Subsidiary
     437,745,493          
 
            
Total Other Assets
             437,760,426  
 
              
 
                
TOTAL ASSETS
           $ 480,364,374  
 
              
 
LIABILITIES
                
 
              
Post-petition Liabilities:
                
 
              
Accounts Payable
     11,087          
 
              
Accruals (2)
     2,188,070          
 
              
Taxes Payable
     —          
 
              
Professional fees
     —          
 
              
Accrued Interest Payable
     —          
 
              
Other (3)
     13,447,052          
 
            
Total Post-petition Liabilities
             15,646,209  
 
              
 
                
Pre-petition Liabilities / Liabilities Subject to Compromise:
                
 
              
Priority Liabilities
     —          
 
              
Unsecured Liabilities (4)
     375,105,944          
 
            
Total Pre-petition Liabilities
             375,105,944  
 
              
TOTAL LIABILITIES
             390,752,153  
 
              
 
                
EQUITY:
                
Pre-petition Owners’ Equity (5)
     (50,693,769 )        
 
              
Post-petition Profit/(Loss)
     130,068,265          
 
              
Direct Charges to Equity
     10,237,725          
 
            
TOTAL EQUITY
             89,612,221  
 
              
 
                
TOTAL LIABILITIES & EQUITY
           $ 480,364,374  
 
              
 
    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 $12.9 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.

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:
  þ   o
       
 
        
       
 
        
       
 
        
       
 
  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:
  þ   o
       
 
        
       
 
        
       
 
        
  3.    
State what progress was made during the reporting period toward filing a plan of reorganization.
Confirmation and related hearings continued throughout April 2010. On April 29, 2010, the Bankruptcy Court held from the bench that it would confirm the chapter 11 plan filed by Signature Group Holdings (as it may be modified, the “Signature Plan”).
        
       
 
        
  4.    
Describe potential future developments which may have a significant impact on the case:
The Debtor anticipates that a confirmation order will be entered in May 2010 and that the Signature Plan will likely go effective in May or early June 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.
  þ   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.
        

Page 14 of 14

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