Judge OKs Crucial Fremont-CapitalSource Deal

Law360, New York (July 21, 2008, 12:00 AM EDT) -- The judge overseeing Fremont General Corp.'s Chapter 11 case signed off on the subprime mortgage lender's plan to sell a nonbankrupt subsidiary's assets to CapitalSource Inc., accomplishing the main objective of the bankruptcy.

On Thursday, Judge Erithe A. Smith of the U.S. Bankruptcy Court for the Central District of California approved a motion authorizing the sale, which has already received the assents of California and federal regulators, of Fremont Investment & Loan's assets to the newly created CapitalSource Bank.

Specifically, Smith ruled that Fremont may direct...
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