Replies to post #172 on BANKRUPTCY PLAYS (CHAPTER)

[lifegear]

FMNTQ .28x.29 similar to what's going on with STBP imho--->>>>

Court Enters Order Restricting Trading in Equity of Fremont General Corporation
Mon Jun 23, 2008 5:30pm EDT Email | Print | Share| Reprints | Single Page| Recommend (0) [-] Text [+]


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Trading will never be the same.BREA, Calif., June 23 /PRNewswire-FirstCall/ -- Fremont General
Corporation ("Fremont General" or the "Company") (Pink Sheets: FMNT), doing
business primarily through its wholly-owned bank subsidiary, Fremont
Investment & Loan ("FIL" or the "Bank"), announced today that the United
States Bankruptcy Court for the Central District of California, Santa Ana
Division (the "Bankruptcy Court") entered a court order ("Order") that imposes
substantial restrictions on the trading of the Company's common stock, par
value $0.01 per share ("Common Stock"), for those holders who are "Substantial
Equityholders" (defined below), effective as of June 18, 2008. The Order was
sought by the Company in an effort to preserve its consolidated net operating
loss carryovers ("NOLs"), which are available to offset the Company's future
taxable income, if any, and reduce the Company's federal income tax liability.
The benefit of the NOLs may be substantially reduced if the Company undergoes
an "ownership change" within the meaning of the Internal Revenue Code of 1986,
as amended (the "Code"). Generally, there is an ownership change if, at any
time, one or more 5% shareholders (or persons or entities holding less than 5%
but who are deemed under treasury regulations to be 5% shareholders) have
aggregate increases in their ownership in a corporation of more than 50
percentage points when considered over the prior three year period. Once all
or part of a NOL is disallowed under the Code on account of an "ownership
change," that NOL's use is permanently limited.
The Order provides the Company with a mechanism to monitor the transfers
of Common Stock and the ability to obtain substantive relief from the
Bankruptcy Court to protect the NOLs from the possible loss due to an
"ownership change." The Company's NOLs, as reported on its 2007 consolidated
tax return, were approximately $695 million and potentially may provide a tax
benefit in excess of $200 million, if preserved.
The trading restrictions established by this Order apply to "Substantial
Equityholders" who purchase or dispose of Common Stock. A "Substantial
Equityholder" is a person or entity that beneficially owns at least 3,904,160
shares of Common Stock, or 5% or more of the outstanding shares of Common
Stock or who at anytime was a 5% shareholder of the Company within the meaning
of the Treasury Regulations section 1.382-2T. Pursuant to this Order, each
existing Substantial Equityholder must serve on the Company and its counsel
within thirty (30) days of June 18, 2008, a written notice in the form set
forth in the Order, which sets forth the amount of Common Stock it
beneficially owns. After June 18, 2008, any person or entity that (i) is not a
Substantial Equityholder and wishes to purchase or otherwise acquire ownership
of an amount of Common Stock that would cause such person or entity to become
a Substantial Equityholder; or (ii) is a Substantial Equityholder and wishes
to purchase or otherwise acquire ownership of any additional Common Stock; or
(iii) is a Substantial Equityholder and wishes to sell or otherwise dispose of
Common Stock, must, prior to the consummation of any such transaction, serve
on the Company and its counsel a written notice in the form set forth in the
Order.
If no written objection to a proposed transaction by a "Substantial
Equityholder," to which proper notice is received, is filed with the
Bankruptcy Court by the Company within twenty (20) calendar days following the
receipt of such notice, then the transaction may proceed. If a written
objection to the proposed transaction is filed by the Company with the Court
within such period, then the transaction may not be consummated unless and
until it is approved by a final and nonappealable order of the Bankruptcy
Court. Any subsequent transactions within the scope of this Order must be the
subject of separate notices and with additional waiting periods. Any
acquisition or disposition of Common Stock made in violation of the Order will
be void and the Bankruptcy Court may consider sanctions or other measures as
the Bankruptcy Court considers appropriate.
About Fremont General
Fremont General Corporation is a financial services holding company with
$8.8 billion in total assets, at September 30, 2007. The Company is engaged in
deposit gathering through a retail branch network located in the coastal and
Central Valley regions of Southern California through its wholly-owned bank
subsidiary, Fremont Investment & Loan. Fremont Investment & Loan funds its
operations primarily through deposit accounts sourced through its 22 retail
banking branches which are insured up to the maximum legal limit by the
Federal Deposit Insurance Corporation ("FDIC").
The Retail Banking Division of the Bank continues to offer a variety of
savings and money market products as well as certificates of deposits across
its 22 branch network. Customer deposits remain fully insured by the FDIC up
to at least $100,000 and retirement accounts remain insured separately up to
an additional $250,000.
To find out more about Fremont General, or to subscribe to the Company's
email alert feature for notification of Company news and events, please visit
www.fremontgeneral.com.
Regulatory Filings
The Company's periodic reports as filed with the Securities and Exchange
Commission ("SEC") can be accessed at www.fremontgeneral.com and on the
EDGAR's section of the SEC's website at www.sec.gov.
Forward-Looking Statements
This news release may contain "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, and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based upon current expectations and beliefs of
the Company and its subsidiaries. These statements and the Company's reported
results herein are not guarantees of future performance or results and there
can be no assurance that actual developments and economic performance will be
those anticipated by the Company. Actual developments and/or results may
differ significantly and adversely from historical results and those
anticipated by the Company for the fiscal year ending December 31, 2008 as a
result of various factors which are set forth in the Company's Annual Report
on Form 10-K for the year ended December 31, 2006, Quarterly Reports on Form
10-Q, and its reports on Form 8-K and other documents filed by the Company
with the SEC from time to time. The Company does not undertake to update or
revise forward-looking statements to reflect the impact of circumstances or
events that arise after the date the forward-looking statements are made,
except as required under applicable securities laws.
SOURCE Fremont General Corporation

Daniel Hilley of Abernathy MacGregor Group, Inc., [phone],
[e-mail], for Fremont General Corporation

[Mark]

FRTL, was my best ride of the year (so far)...