Exhibit 99.1
UNITED COMPANIES REACHES AGREEMENT
FOR MODIFIED PLAN OF REORGANIZATION
BATON ROUGE, LA - August 11, 2000. United Companies Financial Corporation
(OTC:UCFNQ) announced that it has reached an agreement with a representative of
the holders of Subordinated Debenture Claims and the Official Committee of
Equity Security Holders to support a modified plan of reorganization to be filed
shortly by United Companies in connection with the chapter 11 cases of United
Companies and certain of its subsidiaries, which cases are pending in the U.S.
Bankruptcy Court for the District of Delaware in Wilmington. The Equity
Committee has agreed to withdraw its competing plan of reorganization and both
the Equity Committee and such representative of the holders of Subordinated
Debenture Claims have agreed to withdraw objections filed with the Bankruptcy
Court to the previously announced sale of United Companies' whole loan portfolio
and residual and other interests and servicing rights to EMC Mortgage Corp.
For voting purposes and mailing of notices related to the modified plan of
reorganization, June 30, 2000 is the Record Holder Date for the holders of
claims and interests. The voting deadline is 4:00 PM Eastern time on September
11, 2000. A hearing to consider confirmation of the modified plan of
reorganization is scheduled to commence on September 13, 2000.
United Companies Financial Corporation is a specialty finance company that
historically provided consumer loan products nationwide and currently provides
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loan services through its lending subsidiary, UC Lending(R). The Company filed
for chapter 11 on 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
facilities in amounts necessary to fund the Company's operations; the successful
disposition of its existing loan portfolio and repossessed real estate
properties; 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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