First Guardian Financial Corporation Establishes U.S. Receivables & Management Company Subsidiary
Tuesday July 18, 9:03 am ET
NEW YORK--(BUSINESS WIRE)--July 18, 2006--First Guardian Financial Corporation (Pink Sheets: FGFC - News) today announced that the company has established a wholly owned Receivables & Management subsidiary to be named U.S. Receivables & Management Company, a Delaware Registered Company.
The Company will engage in the purchasing and the debt recovery of sub-performing and non-performing receivables. These portfolios of receivables will be acquired at deep discounts and will be outsourced for collections on a contingency basis.
Third-party debt/recovery companies returned $39.3 billion to the U.S. economy in 2005. (Source: "Value of Third-Party Debt Collection to the U.S. Economy: Survey and Analysis," PricewaterhouseCoopers, June 2006.)
U.S. debt/recovery companies earned $12.1 billion in 2005. (Source: "Value of Third-Party Debt Collection to the U.S. Economy: Survey and Analysis," PricewaterhouseCoopers, June 2006.)
"We feel that the establishment of this subsidiary fits our business model of a full service financial company, while adding another service/product line for our business customers. It is the company's intention upon completion of its buysellmerger.com unit that these services can be cross marketed to its clients and will enhance the revenue of the company. We intend to utilize warehouse lines of credit to acquire select portfolios of receivables that will yield the company the greatest return on investment," said Abraham Rosenman, President of First Guardian Financial Corporation.
About First Guardian Financial Corporation:
The company provides Commercial Real Estate Financing & Invests/Lends for its own portfolio in small to mid sized businesses. Its primary goal is to provide short term financing within the commercial real estate market and invest in businesses either start up or growth wise throughout the United States.
This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Contact:
First Guardian Financial Corporation
Investor Relations, 212-572-4823
Fax: 212-572-6499
ir@guardianfinancialcorp.com
www.guardianfinancialcorp.com
Source: First Guardian Financial Corporation
