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Exhibit 99
PRESS RELEASE
For Immediate Release
Contact: Carl C. Gregory, III
President and Chief Executive Officer
(858) 309-6960
MCM CAPITAL GROUP ANNOUNCES RESTRUCTURE OF
TWO REMAINING SECURITIZATIONS
San Diego, CA-November 3, 2000-MCM Capital Group Inc. (OTC.BB-MCMC) announced
today that it has executed amendments with the insurer and investors for the
1999-1 and 1999-A (warehouse) securitizations. The amendments modify the terms
of these securitizations in several important ways.
Among the changes are: (i) an increase in the servicing fee paid on the 1999-A
(warehouse) loan from a variable rate which might be as low as 20% to a flat fee
of 35%, except in certain limited circumstances when it might be 25%; (ii) a
change in the Company's authority to pursue certain business strategies that
were previously not permitted, which will increase in the opportunities for the
Company to collect its servicing fee; and (iii) the conversion of the 1999-A
(warehouse) loan to a term loan with maturity of December 15, 2004.
Commenting on this development, Carl C. Gregory, III, President and CEO, said,
"This is another positive step in the process of putting MCM on sound financial
footing and laying the groundwork for a brighter future."
NOTES TO PRESS RELEASE
1. The statements in this press release that are not historical facts,
including most importantly, those statements preceded by, or that include, the
words "may," "believes," "projects," "expects," "anticipates" or the negation
thereof, or similar expressions, constitute "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform
Act"). These statements may included, but are not limited to, projections of
revenues, income or loss, estimates of capital expenditures, plans for future
operations, products or services, and financing needs or plans, as well as
assumptions relating to those matters. For all "forward-looking statements" the
Company claims the protection of the safe-harbor for forward-looking statements
contained in the Reform Act. Such forward-looking statements involve risks,
uncertainties and other factors which may cause actual results, performance or
achievements of the Company and our subsidiaries to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements. Factors that could affect the Company's results and
cause them to materially differ from those contained in the forward-looking
statements include:
- the Company's ability to maintain existing, and secure
additional, financing;
- the Company's ability to maintain sufficient liquidity to
operate our business including our ability to meet the liquidity
covenant of our securitization and
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warehouse transactions and to obtain new capital to enable the Company
to reinstitute receivable purchases;
- the Company's continued servicing of the receivables in our
securitization transactions and warehouse facility;
- the Company's ability to recover sufficient amounts on or with
respect to receivables to fund operations (including from sellers of
non-confirming receivable portfolios);
- the Company's ability to hire and retain qualified personnel to
recover its receivables efficiently.
- changes in, or failure to comply with, government regulations;
- the Company's ability to successfully integrate the assets
acquired from West Capital Financial Services Corp.;
- the costs, uncertainties and other effects of legal and
administrative proceedings; and
- risk factors and cautionary statements made in the Company's
Annual Report on Form 10-K for the period ended December 31, 1999 and
the Company's Quarterly Report on Form 10-Q for the period ended June
30, 2000.
Forward-looking statements speak only as of the date the statement was made.
They are inherently subject to risks and uncertainties, some of which the
Company cannot predict or quantify. Future events and actual results could
differ materially from the forward-looking statements. The Company will not
undertake and specifically declines any obligation to publicly release the
result of any revisions to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the occurrence of
anticipated or unanticipated events, whether as the result of new information,
future events or for any other reason. In addition, it is the Company's policy
generally not to make any specific projections as to future earnings, and the
Company does not endorse any projections regarding future performance that may
be made by third parties.
