EXHIBIT 99.1
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UNITED COMPANIES RECEIVES APPROVAL FOR DISCLOSURE STATEMENTS AND VOTING
SOLICITATION PROCEDURES BATON ROUGE, LA - July 13, 2000 United Companies
Financial Corporation (OTC:UCFNQ) announced that, 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 Bankruptcy Court approved the Debtors' Disclosure Statement; the Equity
Committee's Disclosure Statement; and solicitation procedures and form of
ballots in connection with the Debtors' Second Amended Plan of Reorganization
and the Equity Committee's Second Amended Plan of Reorganization. The Debtors
have retained an Information Agent to respond to inquiries regarding the
Debtors' Plan, the Debtors' Disclosure Statement, the Equity Committee's Plan,
the Equity Committee's Disclosure Statement and the submission of ballots. The
Information Agent can be reached at 888-559-9367. For voting purposes and
mailing of notices, June 30, 2000 shall be the Record Holder Date for the
holders of claims and interests. The voting deadline is 4:00 PM Eastern time on
August 10, 2000. A hearing to consider confirmation of the respective plans of
reorganization is scheduled to commence on August 15, 2000 at 9:30 AM.
The Debtors' Plan is based upon its previously announced sale of its whole loan
portfolio and residual and other interests and servicing rights to EMC Mortgage
Corp. The Equity Committee's Plan is based upon a continuation of the servicing
of United Companies' loan portfolios through the engagement of a sub-servicer.
Both the Debtors and the Equity Committee have reserved their rights to amend
their respective proposed plans of reorganization.
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On May 30, the Company announced that it and certain subsidiaries signed an
Asset Purchase Agreement and a Mortgage Loan and REO Property Purchase Agreement
for the sale of substantially all of its whole loan portfolio and REO
properties, assets related to its mortgage servicing operations and its interest
only and residual interests as of December 31, 1999, to EMC Mortgage Corporation
and EMC Mortgage Acquisition Corp., subsidiaries of The Bear Stearns Companies,
Inc., for an aggregate cash purchase price of approximately $781 million,
subject to adjustments, plus the assumption of certain liabilities. United
Companies' cash on hand and certain other assets are not included in the sale.
The sales are subject to the approval of the United States Bankruptcy Court and
the submission of higher or better offers pursuant to bidding procedures
approved by the Bankruptcy Court, as well as the satisfaction of certain other
conditions.
Under the bidding procedures previously approved by the Bankruptcy Court,
interested parties have an opportunity to submit separate bids on (1) the
Company's whole loan portfolio and REO properties and (2) the Company's mortgage
servicing operations and interest only and residual interests prior to the
respective sale hearings. The Company continues to provide due diligence to
several parties interested in purchasing the whole loan portfolio, the residual
loan portfolio, or both.
United Companies Financial Corporation is a specialty finance company that
historically provided consumer loan products nationwide and currently provides
loan services through its lending subsidiary, UC Lending(R). The Company filed
for chapter 11 on March 1, 1999.
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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.
