Fremont General Enters Ch. 11 To Close Sale

Law360, New York (June 19, 2008, 12:00 AM EDT) -- Former subprime mortgage lender Fremont General Corp. has voluntarily entered Chapter 11 in order to finalize the sale of its nonbankrupt bank subsidiary to CapitalSource Inc.

On Wednesday, only a few days after California regulators approved the deal and one day after the Federal Deposit Insurance Corp. OK'd it, Brea, Calif.-based Fremont filed for bankruptcy in the U.S. Bankruptcy Court for the Central District of California. It listed both assets and liabilities over $100 million.

Fremont said the main purpose of the filing was to facilitate...
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