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FirstPlus Financial Group
- Industry: Banking/Financial Services
- Service: Corporate Restructuring
Situation
FirstPlus Financial Group, Inc. (NYSE: FP), a multi-million dollar mortgage company operating in high loan to value second mortgages, suddenly lost its ability to securitize and sell its warehoused loans due to a change in Wall Street's attitude towards this type of paper.
Action
GGG restructured FirstPlus Financial Group, Inc. operating subsidiary, FirstPlus Financial, Inc., in a Chapter 11 Bankruptcy while renegotiating over one billion dollars in bond and trade debt. In addition, GGG streamlined the operations at 75 other under-performing loan production offices and coordinated the parent company involvement in the bankruptcy of its subsidiary.
Results
FirstPlus Financial Group, the parent company, was successfully restructured outside of bankruptcy and First Plus Financial, Inc., the subsidiary, successfully emerged from bankruptcy.