IRVING, Texas, July 12 /PRNewswire-FirstCall/ -- The Board of Directors of FIRSTPLUS Financial Group, Inc. (the "Company") (Pink Sheets: FPFX.PK) is issuing this press release to address stockholder inquiries and to correct misunderstandings concerning the FPFI Creditor Trust.
In March 1999, two wholly-owned subsidiaries of the Company, one of them FirstPlus Financial, Inc. ("FPFI"), filed for reorganization under Chapter 11 of the United States Bankruptcy Code. Under FPFI's plan of reorganization, subsequently confirmed by the Bankruptcy Court, the assets, present and future, of FPFI were transferred to a trust (the "FPFI Creditor Trust") administered by an independent trustee. The Company has no control over FPFI or the Creditor Trust and has no interest in the assets of FPFI, other than its interest in the anticipated but uncertain cash flow from payments from the FPFI Creditor Trust to the Company on account of the Company's allowed unsecured claim against FPFI (the "Intercompany Claim").
In 2002, the Company established the FirstPlus Financial Group, Inc. Grantor Residual Trust (the "Grantor Trust") and assigned to it the Company's then remaining interest in the Intercompany Claim. Under the terms of a settlement agreement with the petitioners in a 2006 action against the Company, it agreed that upon receipt by the Grantor Trust of funds in respect of the Intercompany Claim, the Company would cause the Grantor Trust, subject to certain limitations, to distribute 50% of such funds annually to stockholders of the Company.
The sole source of required distributions from the Grantor Trust to stockholders is distributions from the FPFI Creditor Trust to the Grantor Trust. The Company does not know if and when additional distributions will be made from the FPFI Creditor Trust and is unable to influence the independent trustee's decisions in this regard.
Stockholders of the Company may wish to consult the FPFI Creditor Trust's website, http://www.fpficreditorstrust.com/, or to contact the independent trustee, David Obergfell, at 400 North St. Paul Street, Suite 600, Dallas, Texas 75201, (214) 923-7592, for additional information regarding future distributions.
Forward-Looking Statements
This report contains forward-looking statements within the meaning of the "safe harbor" provisions under Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. The Company uses forward-looking statements in its description of its plans and objectives for future operations and assumptions underlying these plans and objectives, as well as in its expectations, assumptions, estimates and projections about the Company's business and industry. These forward-looking statements involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors as more fully described in this report.
Forward-looking terminology includes the words "may", "expects", "believes", "anticipates", "intends", "projects" or similar terms, variations of such terms or the negative of such terms. These forward-looking statements are based upon the Company's current expectations and are subject to factors and uncertainties which could cause actual results to differ materially from those described in such forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this report to reflect any change in its expectations or any changes in events, conditions or circumstances on which any forward-looking statement is based.
