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): March 1, 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 March 1, 1999
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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: March 1, 1999 By: /s/ Dale E. Redman
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Dale E. Redman, Executive Vice President
and Chief Financial Officer
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INDEX TO EXHIBITS
EXHIBIT SEQUENTIALLY
NO. EXHIBIT NUMBERED PAGE
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99 Press Release dated March 1, 1999
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EXHIBIT 99
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[UNITED COMPANIES LOGO] For More Information,
Contact:
Dale E. Redman
Executive Vice President &
Chief Financial Officer
225-987-2385 or 800-234-8232
RELEASE DATE: March 1, 1999
United Companies Announces Intention to File for Reorganization
and
Enter Financing Agreement with Greenwich Capital and CIT
Board Names Midanek as Chief Executive Officer
BATON ROUGE, LA - United Companies Financial Corporation
(NYSE: UC) announced today that it and certain of its
subsidiaries will each commence reorganization cases under
chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court for the District of Delaware in Wilmington by
the close of business today. The Company also announced that
it has received commitments from Greenwich Capital Financial
Products, Inc. and The CIT Group/Business Credit, Inc. to
provide an aggregate of $500 million of debtor-in-possession
financing and loan purchase facility, subject to Bankruptcy
Court approval. Greenwich Capital and The CIT Group will
provide working capital to the Company and Greenwich Capital
will purchase, on a whole loan basis, the Company's home-
equity loan originations. The Company intends to continue to
maintain its business and operations while it pursues
reorganization under chapter 11. The agreements with
Greenwich and CIT will provide the Company with the
flexibility and time necessary to establish itself as a whole
loan sale company.
The Company also announced that its Board of Directors has
named Deborah Hicks Midanek as Chief Executive Officer. Ms.
Midanek replaces J. Terrell Brown, who will continue his 90-
day leave of absence and remains a member of the Board.
Further, the Company announced that it has closed an
additional 28 under-performing UC Lending(R) branches as well as
eight satellite offices as it continues to match production
volume with financing capabilities. In addition, as part of
its transition to a whole loan sale operation, the Company
will close or sell its GINGER MAE(R) subsidiary.
United Companies Financial Corporation is a specialty finance
company that provides consumer loan products nationwide
through its lending subsidiary, UC Lending(R). The Company's
Common and Preferred Stock trade on the New York Stock
Exchange under the symbols "UC" and "UCPRI" respectively.
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: changes in the performance of the financial
markets, in the demand for and market acceptance of United
Companies' products, and in general economic conditions,
including interest rates; the presence of competitors with
greater financial resources and the impact of competitive
products and pricing; the effect of the Company's policies
including the amount and rate of growth of Company expenses;
the availability to the Company of adequate funding sources;
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 effect of changes in market interest rates
on the discount rate assumed by the Company in its gain on
sale computations; timing of loan sales; the quality of the
Company's owned and serviced loan portfolio including levels
of delinquencies, customer bankruptcies and charge-offs;
ratings; and various legal, regulatory and litigation risks.
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. For a more
detailed discussion of some of the on going risks and
uncertainties, see Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations -
Investment Considerations in the Company's Annual Report on
Form 10-K for the year ending December 31, 1997, as well as
other Company filings with the Securities and Exchange
Commission.
