FMT Delisting tomorrow (FMNT), possible bounce

[gambler2075]

So I bought some FMT at 0.21 today, since it is delisting tomorrow and I thought alot of bad news is already factored in...

Afterhours they announced their new symbol (FMNT.PK)

but also said that they got a forbearance for the debt that was due today.

Should bounce on this news tomorrow, imo.

http://biz.yahoo.com/prnews/080416/law107.html?.v=92

Press Release Source: Fremont General Corporation


Fremont General Corporation Provides Information Regarding Suspension of Trading by the NYSE and the Availability of Quotations for Its Common Stock and Trust Preferred Securities on the Pink Sheets
Wednesday April 16, 6:09 pm ET 
COMPANY ALSO ANNOUNCES AGREEMENT BY THE MAJORITY HOLDER OF THE SENIOR NOTES TO FORBEAR FROM PURSUIT OF REMEDIES


BREA, Calif., April 16 /PRNewswire-FirstCall/ -- Fremont General Corporation ("Fremont General" or the "Company") (NYSE: FMT - News), doing business primarily through its wholly-owned bank subsidiary, Fremont Investment & Loan ("Bank"), announced on April 15, 2008 that trading in the Company's Common Stock and the 9% Trust Originated Preferred Securities of Fremont General Financing I ("Trust Preferred Securities") will be suspended by the New York Stock Exchange (the "NYSE") prior to the opening of trading on Thursday, April 17, 2008.

As of the suspension of trading, the Common Stock and Trust Preferred Securities are eligible for quotation on the Pink Sheets, an electronic quotation service for securities traded over-the-counter. The Company was advised by the Financial Industry Regulatory Authority ("FINRA") that the trading symbols for the Company's Common Stock and the Trust Preferred Securities on the Pink Sheets will be "FMNT" and "FMNTP," respectively. Information about the Pink Sheets can be found at http://www.pinksheets.com.

In addition, the Company today received written notice from The Bank of New York ("Trustee"), Trustee for the Series B 7.875% Senior Notes due March 2009 ("Senior Notes"), that the holder of more than 75% of the Senior Notes ("Majority Holder") has agreed to forbear the acceleration of the obligations owed under Senior Notes and the Indenture dated March 1, 1999 (as supplemented or otherwise modified, the "Indenture") by and between the Trustee and the Company, while the Majority Holder explores options with the Company for a restructure of the Senior Note obligations. Thus, the Majority Holder also directed the Trustee not to accelerate the obligations owed under the Senior Notes at this time. This forbearance may be terminated by the Trustee or the Majority Holder at any time, and the Trustee and the Majority Holder have reserved all rights and remedies available to them under the Indenture, the Senior Notes and at law.

This forbearance arises out of the Company not paying the Senior Note semi-annual interest payment of approximately $6.6 million, which was payable on March 17, 2008. Under the terms of the Indenture, the failure to pay the semi-annual interest payment within 30 days of the date such payment was originally due (i.e., by April 16, 2008), constitutes an event of default and entitles either the holders of 25% or more of the Senior Notes to exercise certain enforcement rights and remedies available under the Indenture, including, without limitation, the right to declare the principal of, and the accrued interest on, all Senior Notes to be immediately due and payable.

The Company does not have plans to make this semi-annual interest payment at this time and there is no assurance that the Company will be able to make this payment in the future.

[gambler2075]

Bought too early when this delisted... now trading as fmnt.pk

hit a low of 0.095 but has since more than doubled over the past 2 days...
still holding, looked like a decent consolidation today with an EOD spike.

we'll see if it follows through tomorrow.

gl to ya
g

[gambler2075]

still have some, but sold 90% at 23c...

waiting for possible pullback