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): April 16, 1999
UNITED COMPANIES FINANCIAL CORPORATION
(Exact name as specified in its charter)
Louisiana 1-7067 71-0430414
(State or other jurisdiction of (Commission File Number) (IRS Employer
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)
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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 April 16, 1999 - "United Companies'
Files Motion to Sell Portions of its 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: April 19, 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
- ------- --------- ----------------
99 Press Release dated April 16, 1999 - "United Companies'
Files Motion to Sell Portions of its Retail Lending
Platform to Aegis Mortgage Corporation".
EXHIBIT 99
----------
UNITED COMPANIES FINANCIAL CORPORATION NEWS RELEASE
[UNITED COMPANIES LOGO] FOR IMMEDIATE DISTRIBUTION
For More Information,
Contact:
Deborah Hicks Midanek
Chief Executive Officer
225-987-2385 or 800-234-8232
RELEASE DATE: April 16, 1999
United Companies' Files Motion to Sell Portions of its
Retail Lending Platform to Aegis Mortgage Corporation
C. Geron Hargon Resigns Position as Chief Operating Officer
to Facilitate Transition Team
Baton Rouge, LA - United Companies Financial Corporation
(OTC: UCFNQ) announced today that it is close to finalizing an
agreement with Aegis Mortgage Corporation to sell approximately
126 of the retail branch locations and related assets of its
subsidiary UC Lending(R) and has filed a motion today with the
Bankruptcy Court to approve certain bidding procedures. In
addition, the Company announced that C. Geron Hargon has
stepped down from his position as Chief Operating Officer to
facilitate the transition to Aegis.
Under the terms of the agreement, which is subject to approval
by the Bankruptcy Court and higher or better offers pursuant to
bidding procedures to be established by the Bankruptcy Court,
as well as to satisfaction of certain conditions, Aegis will
pay $3 million and the operating expenses relating to such
branches and related assets for a 30 day period immediately
preceding the proposed closing date of June 1, 1999. In
addition, Aegis will agree to purchase all of the loans, which
are originated by UC Lending(R) during such 30 day period.
The Company anticipates that the remaining 29 branches of UC
Lending(R) still in operation will be closed. The Company's
correspondent loan origination unit, UNICOR Mortgage, and
manufactured housing loan unit, United Companies Funding, were
previously closed. The Company continues to operate its
servicing platform, which currently services approximately
128,000 loans having an aggregate outstanding principal value
of $6.3 billion.
United Companies is a specialty finance company in
reorganization, that provides consumer loan products nationwide
through its lending subsidiary, UC Lending(R).
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 execution of loan sales in
the whole loan sale market; 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
the 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.
