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FMT Fremont General Corp.

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  1. [verwijderd] 30 juli 2008 20:39

    DJ Bankruptcy Monitor Balks At Pay For Fremont General Insiders
    DJ Bankruptcy Monitor Balks At Pay For Fremont General Insiders


    By Patrick Fitzgerald
    Of DOW JONES NEWSWIRES


    The government´s bankruptcy watchdog is objecting to Fremont General Corp.´s plan to pay more than $3 million to a handful of the bank´s insiders, claiming the compensation is "unreasonably high" since the company isn´t operating and its banking unit has been sold off.

    U.S. Trustee Frank M. Cadigan, the Justice Department official monitoring Fremont General´s Chapter 11 case, took issue with Fremont´s request to pay nine company insiders - five executives and four board members - a total of $3.75 million.

    "The proposed insider compensation seems unreasonably high given the status of the case," Cadigan said in court papers filed Tuesday in U.S. Bankruptcy Court in Santa Ana, Calif.

    With the recent sale of Fremont´s banking unit to finance company CapitalSource Inc., the trustee questioned whether "all these insiders" are necessary to run Fremont General now that the bank has been sold, said Cadigan.

    Salaries paid to the five Fremont insiders, including Chief Executive Stephen H. Gordon, total more than $128,000 every two weeks. Stretched out over a full year the five executives´ pay total $3.35 million. In addition, the company wants to pay four non-executive board members annual compensation totaling more than $100,000 each.

    "These compensation proposals for all these insiders appear unreasonably high and even unjustifiable, especially when one looks at all the professionals and the huge hourly rates they plan to charge for being employed," Cadigan said.

    (This article also appears in Daily Bankruptcy Review, a publication from Dow Jones & Co.)

    In addition to a pair of law firms Fremont General is using to handle its bankruptcy case, the company wants to hire financial consultants and a chief restructuring officer at $100,000 a month.

    Fremont´s bankruptcy estate is on the hook for fees racked by its professionals as well as those of professionals hired by the official committees representing creditors and shareholders in its case.

    The company based in Brea, Calif., listed assets of $362 million and debts of $326.5 million in its Chapter 11 filing. Fremont shareholders have argued that the company isn´t insolvent. The shareholders say some of the cash from the sale of the bank - combined with Fremont´s other assets - will be enough to pay creditors in full with money left over for shareholders to see a recovery on their investments.

    The trustee said that "perhaps a few" insiders are necessary to helm Fremont during its Chapter 11 case but at reduced levels of compensation. He said the directors don´t appear to have a vital role in the bankruptcy case going forward.

    Fremont General, formerly a big subprime mortgage lender, filed for bankruptcy protection last month in order to sell its banking arm after federal and state regulators ordered the company to shore up operations at its banking unit.

    Capital Source, a Chevy Chase, Md., commercial finance company, agreed to pay some $198 million to assume about $5.6 billion of deposits from Fremont Investment & Loan. In addition to buying Fremont´s 22 bank branches, the finance company, through its newly formed CapitalSource Bank, will also get $3 billion in cash and short-term investments and 70% of principal payments from a $5.5 billion pool of commercial real estate loans.

    Fremont´s banking unit, Fremont Investment and Loan, was rocked by the collapse of the subprime mortgage market, resulting in more than $1 billion in net operating losses last year. The company sold its subprime division following a cease-and-desist order with the Federal Deposit Insurance Corp., or FDIC, in early 2007.

    Fremont´s Chapter 11 filing came June 18 after banking regulators, including the FDIC., signed off on the CapitalSource deal. Banking regulators had ordered the company to recapitalize the bank by May 26 or sell it.

    -By Patrick Fitzgerald, Dow Jones Newswires; 202-862-3544; patrick.fitzgerald@dowjones.com



    Click here to go to Dow Jones NewsPlus, a web front page of today´s most important business and market news, analysis and commentary: www.djnewsplus.com/al?rnd=RpBLwY2%2Bw... You can use this link on the day this article is published and the following day.




    (END) Dow Jones Newswires

    July 30, 2008 14:22 ET (18:22 GMT)

    Copyright (c) 2008 Dow Jones & Company, Inc.

  2. [verwijderd] 30 juli 2008 20:59
    Laatste koers Verschil


    0.27 USD +0.04 (+15.22 %)
    Bid Ask
    0.00000 0.00000
    Bid Quantity Ask Quantity
    0 0
    Volume Tijdstip
    1171387 2008-07-30 20:57:05
    Slotkoers Openingskoers
    0.23000 0.23000
    Laagste v/d dag Hoogste v/d dag
    0.21500 0.26500
    _______________________ !!!
  3. [verwijderd] 31 juli 2008 16:10
    Laatste koers Verschil


    0.29000 USD +0.04000 (+16 %)
    Bid Ask
    0.00000 0.00000
    Bid Quantity Ask Quantity
    0 0
    Volume Tijdstip
    532232 2008-07-31 16:08:06
    Slotkoers Openingskoers
    0.25000 0.26500
    Laagste v/d dag Hoogste v/d dag
    0.25000 0.29000
    ______________ blijft doorgaan niet te geloven !
  4. [verwijderd] 31 juli 2008 16:12
    quote:

    greg_0 schreef:

    Als dieven in de nacht...het blijven bankiers...slot $0,25 is OK
    Laatste koers Verschil


    0.30500 USD +0.05500 (+22 %)
    Bid Ask
    0.00000 0.00000
    Bid Quantity Ask Quantity
    0 0
    Volume Tijdstip
    606067 2008-07-31 16:10:34
    Slotkoers Openingskoers
    0.25000 0.26500
    Laagste v/d dag Hoogste v/d dag
    0.25000 0.30500
    ___________ heb je ze nog ???????????!!!!!!!!!!!!!
  5. [verwijderd] 31 juli 2008 22:04
    quote:

    greg_0 schreef:

    Ik houd ze stijf vast oa. 50k op 0,07...na de verkiezingen gaat het spul weg
    Laatste koers Verschil


    0.31000 USD +0.06000 (+24 %)
    Bid Ask
    0.00000 0.00000
    Bid Quantity Ask Quantity
    0 0
    Volume Tijdstip
    1679077 2008-07-31 21:57:52
    Slotkoers Openingskoers
    0.25000 0.26500
    Laagste v/d dag Hoogste v/d dag
    0.25000 0.31500
  6. [verwijderd] 2 augustus 2008 01:23
    Is in ieder geval op het hoogste punt gesloten.
    Dus van winstnemingen is eigenlijk geen sprake.

    Die ,375 kan ik nergens vinden vandaar dat ik uitga van het hoogste punt.

    Maandag de week beginnen met een mooie short squice??

    Geluk gewenst aan een ieder die net als mij de zenuwen kan bedwingen en nog niet heeft verkocht.

    Voorlopig is m'n net genoten vakantie alweer betaald.

    Gr,
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