BEAUMONT, Texas, July 24 /PRNewswire-FirstCall/ -- FirstPlus Financial Group, Inc. (Pink Sheets: FPFX), announced today the Company will consent to the United States Trustee's request for the appointment of a Chapter 11 Trustee to manage the Company's bankruptcy estate. The Company filed for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division on June 23, 2009, in hopes of enhancing liquidity while it reorganizes it's operations.
After considering a variety of factors and after consulting with Cox Smith Matthews Incorporated, the Company's bankruptcy counsel, the Company determined the appointment of a Chapter 11 Trustee was in the best interest of the Company, its shareholders and its creditors. Based on the Company's agreement on July 24, 2009, the Bankruptcy Court authorized the appointment of Matthew Orwig as Chapter 11 Trustee. The Company has advised the Office of the U.S. Trustee it will cooperate with the appointed trustee in hopes of expediting the trustee's actions in managing the estate.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning future business conditions and the outlook for FirstPlus Financial Group, Inc. (the "Company") is based on currently available information that involves risks and uncertainties. These forward-looking statements include, without limitation, statements regarding the Company's expectations concerning the bankruptcy process and the commencement of its business plans. The Company's actual results could differ materially from those anticipated in the forward-looking statements as a result of these risks and uncertainties, including, without limitation, (1) the impact of today's announcement on the Company's business plans; (2) the ability of the Company to fund and execute its business plans;(3 ) the ability of the Company to continue as a going concern; (4) the ability of the Company to obtain approval of and operate pursuant to the agreement with its secured creditor for the use of its cash collateral; (5) the ability of the Company to obtain court approval of the Company's first day papers and other motions in the Chapter 11 proceeding pursued by it from time to time; (6) the ability of the Company to develop, pursue, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (7) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, or the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; (8) the ability of the Company to obtain and maintain normal terms with service providers; (9) the ability of the Company to maintain contracts that are critical to its operations; (10) potential adverse developments with respect to the Company's liquidity or business plans;(11) the ability of the Company to retain and compensate key executives, advisors and other key personnel; (12) the ability of the Company to attract and retain customers; and (13) any further deterioration in the macroeconomic of consumer lending services environment or consumer confidence. Each forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances, except as required by law.
FirstPlus Financial Group, Inc.
CONTACT: FirstPlus Financial Group, Inc., +1-409-363-0695
