Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
August 19, 1999 0-21845
Date of report (Date of earliest event Commission File Number
reported)
Wilshire Financial Services Group Inc.
(Exact name of registrant as specified in its charter)
Delaware 93-1223879
(State or other jurisdiction of incorporation) (I.R.S. Employer Identification
Number)
1776 SW Madison Street, Portland, OR 97205
(Address of principal executive offices)(Zip Code)
(503) 223-5600
Registrant's telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report)
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Item 5. OTHER EVENT.
On August 19, 1999, Wilshire Financial Services Group Inc. ("WFSG"
which, along with its subsidiaries, is referred to herein as the "Company")
notified its Chief Executive Officer, Andrew Wiederhorn and its President,
Lawrence Mendelsohn of its intention to terminate their employment with the
Company for cause effective at the close of business on September 2, 1999 and
suspended them from their duties as employees of the Company effective August
19, 1999 through September 2, 1999.
On August 24, 1999, Kevin Kelly announced that he was resigning from
his position as interim Chief Executive Officer and a director of First Bank of
Beverly Hills, F.S.B., a subsidiary of WFSG.
Item 7 FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Press Release dated August 19, 1999.
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EXHIBIT 99.1
Thursday August 19, 6:48 pm Eastern Time
Company Press Release Statement From the Board of Directors of Wilshire
Financial Services Group Inc.
PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 19, 1999--Wilshire Financial Services
Group Inc. (Nasdaq: WFSG - news), today announced the suspension of its Chief
Executive Officer, Andrew Wiederhorn and its President, Lawrence Mendelsohn from
their duties as employees of the company. The company has recently emerged from
bankruptcy; its plan of reorganization became effective on June 10, 1999. As
part of the restructuring of the company approved by the Bankruptcy Court,
several new independent directors were appointed to the company's Board,
constituting, in the aggregate, a majority of the new Board. After evaluating
the existing management of the company, the Board today resolved that it would
be in the best interests of the company to suspend Messrs. Wiederhorn and
Mendelsohn from their duties as employees of the company for approximately two
weeks. During the next two weeks, the Board will have the opportunity to
consider significant issues relating to the leadership and strategic direction
of the company, including whether the interests of the company would be best
served by the appointment of new management. In the interim, the Board has
contracted the services of a consultant to advise the Board on the day-to-day
affairs of the company.
For more information contact: Olga Haley or Becky Warner Power Public Relations
503/590-6999 or 503/780-5007
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WILSHIRE FINANCIAL SERVICES
GROUP INC.
Date: August 25, 1999 By: /s/ Chris Tassos
Chris Tassos
Executive Vice President and
Chief Financial Officer
