UNITED STATES
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
Date of Report (Date of earliest event reported): June 1, 1999
UNITED COMPANIES FINANCIAL CORPORATION
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(Exact name as specified in its charter)
Louisiana 1-7067 71-0430414
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
4041 Essen Lane, Baton Rouge Louisiana 70809
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(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code (225) 987-0000
Not Applicable
(Former name or former address, if changed since last report)
PAGE 1
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Item 5. Other Events.
The Registrant files herewith the exhibit listed in Item 7(c) below.
Item 7(c). Exhibits.
The following exhibit is furnished in accordance with Item 601 of
Regulation S-K:
99 Press Release dated June 1, 1999 - United Companies
Completes Sale of Retail Lending Platform to Aegis
Mortgage Corporation
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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.
UNITED COMPANIES FINANCIAL CORPORATION
(Registrant)
Date: June 3, 1999 By: /s/ MICHAEL W. TRICKEY
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Michael W. Trickey
Chief Financial Officer
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INDEX TO EXHIBITS
EXHIBIT SEQUENTIALLY
NO. EXHIBIT NUMBERED PAGE
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99 Press Release dated June 1, 1999 - United Companies
Completes Sale of Retail Lending Platform to Aegis
Mortgage Corporation
EXHIBIT 99
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UNITED COMPANIES FINANCIAL CORPORATION
[UNITED COMPANIES LOGO]
NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
For More Information,
Contact:
Deborah Hicks Midanek
Chief Executive Officer
225.987.2385 or 800.234.8232
RELEASE DATE: June 1,1999
United Companies Completes Sale of
Retail Lending Platform to Aegis Mortgage Corporation
Company Continues to Focus on its $6.4 Billion Mortgage
Servicing Business
Baton Rouge, LA - United Companies Financial Corporation
(OTC: UCFNQ) announced today that it has completed the sale
of a substantial portion of the Company's retail lending
platform,UC Lending(R), to Aegis Mortgage Corporation, a
mortgage company based in Houston, Texas. The Company previously
announced on May 12, 1999 that the Bankruptcy Court in which its
reorganization proceedings are pending had approved the sale.
Under the terms of the sale, Aegis paid $3 million plus an
additional $7.3 million to cover the May, 1999 operating expenses
relating to 127 branch offices and related retail lending assets.
Aegis also assumed the post-closing obligations under the leases
to the 127 branch offices and under the equipment leases, auto
leases and other contracts and agreements associated with operating
these branch offices and the Baton Rouge home office facilities of
the retail lending platform. In addition, Aegis purchased all of the
loans closed by UC Lending(R) during the month of May. United Companies
confirmed that the remaining 28 branches have been closed.
"The completion of the sale of our retail lending platform to
Aegis will permit us to continue to focus on our $6.4 billion
servicing portfolio," said Deborah Hicks Midanek, Chief Executive
Officer of United Companies. "The Company is among the largest
servicers in the subprime industry and has a long history of handling
these specialized loans."
- Continued -
<PAGE>
UC Completes the Sale of Retail Lending Platform - Page 2 of 2
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Separately, the Company indicated that it has been advised
that its common stock is now being quoted in the "over the
counter" market under the stock symbol "UCFNQ" and the
Company's preferred stock is now being quoted in that market
under the symbol "UCFPQ".
United Companies is a specialty finance company that services
non-traditional consumer loan products. The Company has been
in a Chapter 11 reorganization since March 1, 1999.
The following is a "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995: The statements
contained in this release that are not historical facts are
forward-looking statements based on the Company's current
expectations and beliefs concerning future developments and
their potential effects on the Company. There can be no
assurance that future developments affecting the Company will
be those anticipated by the Company. Actual results may
differ from those projected in the forward-looking
statements. These forward-looking statements involve
significant risks and uncertainties (some of which are beyond
the control of the Company) and are subject to change based
upon various factors, including but not limited to the
following risks and uncertainties: the developments in and
outcome of the Company's Chapter 11 reorganization
proceedings; the ability to access loan and warehouse
facilities in amounts necessary to fund the Company's
operations; the successful disposition of its existing loan
portfolio; the ability of the Company to successfully
restructure its balance sheet; the ability of the Company to
retain an adequate number and mix of its employees; the
effect of the Company's policies including the amount of
Company expenses; actual prepayment rates and credit losses
on loans sold as compared to prepayment rates and credit
losses assumed by the Company at the time of sale for
purposes of its gain on sale computations; the quality of the
Company's owned and serviced loan portfolio including levels
of delinquencies, customer bankruptcies and charge-offs;
adverse economic conditions; competition; various legal,
regulatory and litigation risks and other risks detailed from
time to time in the Company's Securities and Exchange
Commission filings. The Company undertakes no obligation to
publicly update or revise any forward-looking statements,
whether as the result of new information, future events or
otherwise.
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