Fremont General Financing 9% TOPrS (fka FMNPQ)

[Enterprising Investor]

Final result: $5,099.24 or 82.1 percent in 384 days.

My game plan was to continue buying FMGC.GB based on my belief that the confirmed reorganization plan would involve noteholders receiving new equity. Equity survived, and I was going to receive cash.

Better than money market fund returns!

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38216941

[Enterprising Investor]

FMGC.GB distribution: $1,117.106 per $1,000 principal.

A buyer on 5/20/10 who paid 81 made 30.71 or 37.9 percent in less than 30 days!

[AKAPAK]

Following the last trade:

http://blog.taragana.com/business/2010/06/14/subprime-lender-fremont-general-emerges-from-bankruptcy-after-signature-group-reorganization-70265/

[Enterprising Investor]

FMNPQ last trading date (6/10/10)

2010/06/10 21.70 21.80 21.25 21.80 9,100 21.80

[Enterprising Investor]

FMGC.GB last trade 81 (5/20/10)

Issue: FMGC.GB Description: SIGNATURE GROUP HOLDINGS INC Coupon Rate: 7.875 Maturity Date: 03/17/2009

05/20/2010 15:17:20 T 10000 80.650 0.000 N @ B
05/20/2010 15:16:47 T 10000 81.000 0.000 N @ D

[Enterprising Investor]

Form 8-K (6/01/10):

http://sec.gov/Archives/edgar/data/38984/000095012310054829/v56365e8vk.htm

[Enterprising Investor]

Signature Group Holdings, LLC Plan confirmed (5/25/10).

http://www.kccllc.net/documents/0813421/0813421100525000000000001.pdf

[Enterprising Investor]

Signature Group, New World win control.

Source: Law360

[Enterprising Investor]

Valuing FMNPQ under the SG Plan:

Class 3C Claim

Principal amount: $103,092,784
Accrued interest: $4,329,897
Total Claim: $107,422,681

Claim per FMNPQ: $26.05

Settlement

Cash: $45,000,000
New Notes: $39,000,000
Stock: $19,110,000*
Total: $103,110,000

Value per FMNPQ: $25.00

21 million FMNTQ shares at $.91 per share (4/28/10)

FMNPQ closed at $22.60.

[Enterprising Investor]

Hearing set for 4/29/10 at 2:00.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=49562590

[Enterprising Investor]

OEC will no longer act as obstacle.

It will support the Signature Group Plan going forward.

[Enterprising Investor]

Joint Statement Regarding Plan Modifications and Solicitation

Basically, the Debtor and OCC believe the time for resolution is now and no attempt to re-solicit should be allowed.

There are also grave consequences to a revote. These are some of those I feel are important:

(1) millions of dollars of additional administrative costs.
(2) Bank of New York Mellon settlement increases from $7 million to $10 million if not confirmed by 6/30/10.
(3) senior noteholders would seek contract rate on post-petition interest at a cost of $20 million if litigation would be successful.

http://www.kccllc.net/documents/0813421/0813421100421000000000007.pdf

[Enterprising Investor]

FMGC.GB up 36 to 110 (3/31/10)

Issue: FMGC.GB Description: FREMONT GENERAL CORP Coupon Rate: 7.875 Maturity Date: 03/17/2009

03/31/2010 12:19:38 T 59000 110.000 0.000 N @ S
03/31/2010 12:15:19 T 59000 110.000 0.000 N @ D

[Enterprising Investor]

Consensus Agreement reached between OEC and TOPrS.

(1) Change of votes in favor of Current OEC Plan
TOPrS Group will change their vote from reject to accept.

(2) Reinstatement of TOPrS under Current OEC Plan
If TOPrS Group votes to accept, OEC will withdraw its request to reinstate TOPrS under the Current Plan. TOPrS will withdraw their joinder to Wells Fargo's objection and urge Wells Fargo to withdraw its objections to the Current OEC Plan.

(3) Post-Confirmation Governance
The New Board will have seven members:
Seth Hamot - TOPrS
Howard Amster - TOPrS
Steven Tannenbaum - TOPrS
Lawrence Hershfield - Ranch Capital
Frank Williams, Jr - Current OEC Member
William Stern - Current OEC Member
Mark Brostowski or designee named by Regent Capital - Equityholder

(4) Reimbursements
Increased from $100,000 to $200,000 for attorney's fees and expenses.

(5) Condition Precedent: Court Approval

(7) Successors and Assigns

(8) Additional Provisions
[Typical legalese]

(9) [More legalese]

Hearing set for 3/31/10 at 2:00 pm.

[Enterprising Investor]

Tennenbaum Capital raising money for distressed-debt fund

http://www.bloomberg.com/apps/news?pid=20601109&sid=aANYaL4fjrLs&pos=15

[Enterprising Investor]

Hamot focused on fair management fees.

I am not sure if anyone heard him provide another example of trying to control management fees - NCT.

You can learn more by listening than talking!

http://www.marketwire.com/press-release/Preferred-Shareholders-Support-Newcastle-Investment-Corps-Exchange-Offer-NYSE-NCT-1121957.htm

[guster0]

EI,

You had some good questions!

Do you have a preference?

[Enterprising Investor]

Tonight I participated in the SC call.

Last night, I listened to the OEC/Ranch Capital call.

Obviously, each commented on the other's plan. Based on what I have heard, these two groups have great, but different, plans. I expect these two will have to fight it out for FMNPQ and FMNTQ votes.

[Enterprising Investor]

Interesting ploy by Signature Capital.

Signature is not just trying to buy class votes with this move but also trying to effectively kill the OCC plan. The only classes under debate are TOPrS and those further down the food chain. Tennenbaum owns 81% percent of the principal amount of the Senior Notes. All Tennenbaum then has to do is convince the rest of the OCC to take the deal with the best "bonus" and remove theirs from the table.

[guster0]

EI,

There was some concern from other PP's about that 1.5 million that Signature proposed. I was removed from the call before the final word on how the court was going to allow that payment. It did not sound like they were going to just give the money away. I would look for changes on that after the hearing today. They are approving the wording of each of the PP solicitations today.

Email me at [e-mail] for further details.

[Enterprising Investor]

Signature Capital offers "bonus" to FMGC.GB holders.

All of the plans offer post-petition interest at FJR, but SC will pay $1.5 million if the Senior Note class accepts the plan.

[Enterprising Investor]

Votes are currently being bought!

In six out of the last seven days more money has moved in FMNPQ than FMNTQ ($3,463,755 vs $611,918).

FMNPQ FMNTQ
421470 81072
664845 107660
28575 48162
411480 230400
409575 114057
901065 20148
626745 10419

[guster0]

COMMON AND TOPRs HOLDERS TRYING TO BOND
if interested contact Rock at this email address

[e-mail]

[Enterprising Investor]

CRG partner successfully turns PGPDQ around.

http://finance.yahoo.com/news/Pilgrims-Pride-exits-apf-2928166957.html?x=0&sec=topStories&pos=2&asset=&ccode=

[marayatano]

Thank you for the PM/Tip. I will look into it. Happy Holidays! eom

[Enterprising Investor]

Amended OEC Plan gets my vote!

The TOPrS Group split from the OCC makes this amended plan work. The compromise will most likely allow the TOPrS Group members to recover all or at least a large portion of their historic cost.

[Enterprising Investor]

TOPrS, McIntyre and OEC file Term Sheet.

The TOPrS Group agrees to vote in favor of the Amended OEC Plan if Class 3B vote as a class to accept the Amended OEC Plan, the class will receive:

(a) $40 million in cash without interest (TOPrS Payment) on Effective Date.

(b) an unsecured promissory note (TOPrS Note) in the amount equal to the sum of (1) $42.75 million; (2) accrued interest from the Effective Date on $42.75 million at 9 percent payable in cash quarterly on the last day of the quarter; the maturity date of the TOPrS Note is 12/01/21; and (4) TOPrS Note is callable on the second anniversary of the Effective Date provided the TOPrS Payment has been made.

(c) 27.5 million shares (TOPrS Equity) on the Effective Date.

(d) 10-year warrants for 5 million shares at a strike price of $1.50.

(e) one of the equity seats on the New Board if the TOPrS Payment has not been paid on the Effective Date until the $40 million has been paid.

(f) upon a final determination of the number of shares necessary to the TOPrS to preserve NOLCFs, an adjustement of $.50 per share will be made to the TOPrS Note by $.50 for each additional share issued.

(g) TOPrS Trust will hold the equity for three years.

(h) the New Board will be made up of two TOPrS representatives (once the TOPrS Payment made), two Equity representatives and one neutral.

(i) if rejected, the current terms of the plan will control the outcome of the TOPrS.


http://www.kccllc.net/documents/0813421/0813421091116000000000003.pdf

[Enterprising Investor]

The NWA Plan is the best deal.

I never redeployed capital into FMNPQ. No regrets. I was able to put money to work in other deals - FCY, LHHMQ and SKRUF - that have already generated a higher return than holding FMNPQ to confirmation.

I still own FMGC.GB. Although investing in distressed debt may appear to produce lower rates of return when compared to common and preferred stock, the ability to use a margin account is an advantage. It can nearly double your return if you are willing to take that much risk. Capital appreciation reduces the risk and produces more buying power over time.

Now, I just want my money back! ;o)

If, or should I say, when, the NWA Plan is approved, I will do my part by buying some votes.

[Enterprising Investor]

OEC and OCC file new/revised plan documents.

WIP

[Enterprising Investor]

FMGC.GB up 10.127 to 74.875 (9/24/09)

Issue: FMGC.GB Description: FREMONT GENERAL CORPORATION Coupon Rate: 7.875 Maturity Date: 03/17/2009

Execution
Date Time Status Quantity Price Yield Comm. Modifier 2nd Modifier Special As Of Reporting Party Side
09/24/2009 11:15:50 T 25000 74.875 0.000 N @ B
09/24/2009 10:39:26 T 25000 75.250 0.000 N @ D
09/24/2009 10:38:50 T 25000 75.270 0.000 Y @ S
09/24/2009 10:38:38 T 25000 75.250 0.000 N @ D

[Enterprising Investor]

FMNPQ got a little ahead of itself.

Based on some great information about the hearing provided at the Yahoo site, it appears to me that the OCC Plan currently has an advantage over the OEC Plan. However, the OEC, as is usually the case, always has the ball with seconds left and a opportunity to run that "Hail Mary" play. You just make sure you have the right players on the field.

I would be a buyer of FMNPQ again near $15.

[guster0]

Short Listing

For FMNTQ for Sept.

If this rally fails tomorrow then yes you could say the shorts had to get out due to the trust shares that would not be able to trade once the OEC confirmation.

http://shortsqueeze.com/?symbol=fmntq&submit=Short+Quote%99

A interesting Tuesday is shaping up to say the least!

[Enterprising Investor]

Short covering one possibility.

The OCC Plan creates an Equity Trust. This sort of arrangement will really screw up the shorts. Why? In cases in which the equity does not survive, shorts can wait months or years for the price to decline to less than a penny to cover.

Not this case.

FMNTQ will be exchanged for trust units. The exchange offer itself is not a problem if the units would continue to trade. However, there is no way to cover once trading stops.

[guster0]

EI,

Is the increase in "T" do to short covering? Or?????

Can't figure this one out?

3 Million shares in 2 days is a boatload for a "Q" stock.

[Enterprising Investor]

Common increases 14.52 percent to $.355.

FMGC.GB and FMNPQ action is a non event. The lack of followthrough is becoming worrisome to me. FMGC.GB should be moving up, if for no other reason is that the amount not held by Tennenbaum is so limited. Then again, it tends to trade about once every two to three weeks.

[guster0]

EI,

Do you have your ticket to the court for this Thursday at 2:00 pm PDT?

Should be very interesting.

I will be on the call can't wait!

I just hope they don't postpone or cancel do to all the last minute changes.

[Enterprising Investor]

FMNPQ hits new 52-week high (9/14/09)

FREMONT CP I 9 TOPRS(Other OTC: FMNPQ.PK)
Last Trade: 16.05
Trade Time: 3:12pm ET
Change: 0.00 (0.00%)
Prev Close: 16.05
Open: 16.00
Bid: N/A
Ask: N/A
1y Target Est: N/A
Day's Range: 16.00 - 16.45
52wk Range: 2.45 - 16.45
Volume: 6,020
Avg Vol (3m): 5,806.35

[sadam-x]

Thank you for the insights. It will be interesting to see how much of the FMTPQ price is actual value verses speculation.

[Enterprising Investor]

FMNPQ hits new 52-week high (9/11/09)

FREMONT CP I 9 TOPRS(Other OTC: FMNPQ.PK)
Last Trade: 16.05
Change: 1.00 (3.55%)
Prev Close: 15.50
Open: 15.25
Bid: N/A
Ask: N/A
1y Target Est: N/A
Day's Range: 16.05 - 15.25
52wk Range: 2.45 - 16.05
Volume: 14,000

[Enterprising Investor]

Amended OCC Plan submitted.

I am sure many of you remember the "Mission: Impossible" series with Peter Graves as Mr. Phelps. Phelps would always have to listen to his next mission on a tape recorder. Now imagine, the voice of Bob Johnson saying, "This plan will self destruct in five days".

It appears to me that both OCC plans have been designed to maximize recovery for creditors with claims senior to FMNPQ. I expect that the FMNPQ holders will switch to supporting an OEC plan or creating one of their own.

[Enterprising Investor]

Sorry for the incomplete thought...

There is actually something fundamentally wrong with FMGC.GB and FMNPQ trading at the same valuation this late in Stage III. FMGC.GB should be in the 80s when compared to other cases like CEMJQ, SSCCQ and especially WAMUQ.

The FMNTQ case will be resolved much sooner than WAMUQ.

The $15 to $16 range for FMNPQ remains appropriate with no additional information.

I expect a Second Amended EOC Plan being presented shortly, which will detail FMNPQ being exchanged for convertible preferred. I made this recommendation on 8/18/09, which was two days before Nerland made the call. At the time, I know some people dismissed the concept. I think they will be surprised in the end.

In reality, half or maybe 75 percent of the FMNPQ holders would accept new securities trading at or near par today rather then put FMNTQ in a liquidation mode in which the price would not be much higher then it is today. FMNTQ will rise significantly once a plan has been approved by the court, but will decay over time.

If I was still a FMNTQ holder, I would sell on the good news (announcement) and then buy FMNPQ for the long haul. FMNPQ is still a double from here if a preferred option is proposed and accepted. Not sure about the price of FMNTQ outside of the actions of "ignorant investors". It could briefly hit $.75 or $1 with an imbalance of buy orders - not a prediction.

[Enterprising Investor]

Unable to buy FMNPQ at $16.

The strange thing is no action in FGMC.GB since 8/13/09 at 64.747. FMGC.GB and FMNPQ are both trading around 64 cents on dollar. Once again, the valued paid out is predicted to be the same.

[guster0]

T's or P's IE?

[Enterprising Investor]

Going back in NOW!

[Pres and Gus: Never got the answer I was looking for a couple of weeks ago.]

[Enterprising Investor]

OCC modifies Early Payment Election.

General Unsecured Creditors may elect to receive cash payments by November 30, 2009, equal to the principal and pre-petition accrued interest amounts of their allowed claims plus fifty percent (50%) of the post-petition interest to which they are entitled, in exchange for a waiver of any right or claim they may have to receive payment of the remaining fifty percent (50%) of post-petition interest that has accrued on such claims.

Source: PACER (9/10/09)

[Enterprising Investor]

Created a survey to determine Class 2B preferences.

You need not be a TOPrS holder to vote.

http://investorshub.advfn.com/boards/board_surveymenu.asp?board_id=12309

[Enterprising Investor]

Average and Median Duration of Conventional Cases (1980-2007)

Pre-2005 BAPCPA
22/18

Post-2005 BAPCPA
13/14

The Act capped Debtor plan proposal and solicitation at 20 months.

[Enterprising Investor]

Reorg expenses always seem unfair to investors.

LTV was the largest-ever filing at the time in 1986 with $4 billion at debt. It took 7 1/2 years and cost nearly $270 million. It eventually made a second trip December 2000.

It may seem to most that everyone is far apart. However, everything should start coming together quickly once all the parties and the judge are in court room discussing the various disclosure statements and plans.

A small amount of erosion is normal. Remember where FMNTQ was the trading day before the Debtor plan was filed? $.30. The plan was disclosed and down it went. It came right back up.

I have not yet redeployed my proceeds into FMNPQ. I am NOT one of those who says, "I hope it goes down so I can buy more". I just have not pulled the trigger yet. The only concern is buying back into FMNPQ when I already own FMGC.GB reduces my diversification. Finance is my life. This causes me to have to much in financial services companies, although my 401-K with all those C units has done well since Jim Cramer keeps plugging away. There are several Qs in other industries getting in the same situation as FMNTQ was in April when I entered.

In any case, if the OEC plan (or equivilent) capitalizing on the banking fallout would be confirmed, I would quickly buy in. Plus, there are some profitable community banks out there, even in CA.

[Enterprising Investor]

Motions filed by CC regarding solicitation and voting.

Notice of Motion and Motion for Order Approving (A) the Form, Scope, and Nature of Solicitation, Balloting, Tabulation, and Notices With Respect to the Chapter 11 Plan of Fremont General Corporation Presented by the Official Committee of Unsecured Creditors (Dated August 12, 2009), and (B) Related Confirmation Procedures, Deadlines and Notices

Source: PACER (8/27/09)

[Pres1ton]

E, my confidence in Commons is quickly eroding and honestly I think the way these folks are bleeding the cash out of Fremont that they may run right through the TOPrS money or at least well into it.

Do you see TOPrS value eroding?