Removal of the Immediate-Bankruptcy-Filing Threat
Fremont General Enters Into Forbearance Agreement With Majority Senior Debt Holder
Monday June 2, 9:00 am ET
BREA, Calif., June 2 /PRNewswire-FirstCall/ -- Fremont General Corporation ("Fremont General" or the "Company") (Pink Sheets: FMNT - News), doing business primarily through its wholly-owned bank subsidiary, Fremont Investment & Loan ("Bank"), announced today that the Company entered into a Forbearance Agreement (the "Agreement") with Tennenbaum Multi-Strategy Master Fund ("Tennenbaum"), the majority holder of the Company's $166.5 million of Series B 7.875% Senior Notes due March 2009 ("Senior Notes"), which is intended, among other things, to facilitate the closing of the transactions contemplated by the Purchase and Assumption Agreement (the "Purchase Agreement"), dated April 13, 2008, by and among the Company, the Bank, CapitalSource, Inc. ("CapitalSource") and certain subsidiaries of each company, which provides for the sale by the Bank of certain designated assets and certain liabilities, including all of the Bank's deposits to CapitalSource Bank, a proposed California industrial bank and indirect wholly-owned subsidiary of CapitalSource.
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