New World Acquisition, LLC ("New World") is one of the four remaining plan proponents who seek acceptances of shareholders and creditors for their plan to reorganize Fremont General Corporation ("Fremont") with the withdrawal of the Ranch Capital plan. New World, whose principals hold over 3.5 million shares, remains committed to pursuing its plan to provide all constituents with the greatest, most expeditious return on their claims and interests through a plan that is fair, achievable and confirmable.
The New World plan retains the most cash within Fremont to fund operations and invest, cash that can be deployed to capitalize on one of Fremont's most valuable assets--approximately $769 million net operating loss. The New World plan is the only plan that gives the holders of the TOPrS (the "Trust-Originated Preferred Securities") the option to exchange their TOPrS for a new, tradable note with a short term maturity and 9% interest payable semi-annually. It is the plan that provides for the best management team, led by directors and executives with a strong, long term investment record in both commercial real estate and corporate credits.
Steven Shepsman has been integrally involved in many high profile real estate transactions, including underwriting and structuring debt and equity financings and M&A transactions for complex real estate assets and portfolios, and in both judicial and non-judicial real estate restructurings, including currently serving as Chair of the Official Equity Committee in the Chapter 11 proceedings of General Growth Properties, Inc., a regional mall owner and operator with in excess of $30 billion in real estate assets. See www.nwradvisors.com.
Ken Grossman has recognized expertise in originating and managing specialized fixed income products including distressed corporate debt. Ken was instrumental in the reorganization of such well-known companies as Western Union, Loehmann's, Evercom Systems, Oneida and Kasper/Anne Klein.
Seth Lipsay has more than 20 years of experience in originating, underwriting, structuring, negotiating and harvesting complex debt, mezzanine and equity investments in the commercial real estate and specialty finance arenas including originations in excess of $2 billion of commercial and multifamily mortgage loans and more than $1 billion of corporate leveraged lease financings at major Wall Street firms. See www.nwradvisors.com.
Daniel Pfeffer has significant expertise in real estate finances having been directly responsible for the underwriting, acquisition and/or restructuring of several billion dollars of real estate loans and investments on behalf of several major financial institutions such as GE Capital.
The New World plan, in comparison to the other plans where the proponents are contributing new capital and in comparison to other plans that provide different treatment to the TOPrS, is the least dilutive plan to equity holders and will result in the fewest number of shares outstanding.
Creditors and shareholder can vote to accept or reject each of the plans and they may indicate their preferences among the plans on their ballots by ranking them from 1 to 4, with "1" being the plan most preferred. New World is asking all parties to accept its plan and reject all others.
Cautionary Statements
This release contains forward-looking information. Statements contained in this news release relating to future results, events and expectations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may involve known and unknown risks and other factors and uncertainties which may cause the actual results to be materially different from those expressed or implied by such statements. The Company does not have any intention or obligation to update forward-looking statements included in this press release after the date of this press release, except as required by law.
No stock exchange or regulatory authority has approved or disapproved of the information contained herein.
Contacts:
New World Acquisition, LLC
Steve Shepsman
Ken Grossman,
646-723-4751
Fax: 646-723-4760
www.nwradvisors.com
