<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
================================================================================
1. Name and Address of Reporting Person*
The Goldman Sachs Group, L.P.
- --------------------------------------------------------------------------------
(Last) (First) (Middle)
85 Broad Street
- --------------------------------------------------------------------------------
(Street)
New York, New York 10004
- --------------------------------------------------------------------------------
(City) (State) (Zip)
================================================================================
2. Date of Event Requiring Statement (Month/Day/Year)
March 23, 1999
================================================================================
3. I.R.S. Identification Number of Reporting Person, if an entity (voluntary)
================================================================================
4. Issuer Name and Ticker or Trading Symbol
MFN Financial Corporation
(MFNNQ)
================================================================================
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
[ ] Director [ X ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
--------------------------------------------------------------------
================================================================================
6. If Amendment, Date of Original (Month/Year)
================================================================================
7. Individual or Joint/Group Filing (Check applicable line)
[ ] Form Filed by One Reporting Person
[ X ] Form Filed by More than One Reporting Person
================================================================================
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
Table I -- Non-Derivative Securities Beneficially Owned |
====================================================================================================================================
| | | |
| | | |
| | 3. Ownership Form: | |
| 2. Amount of Securities | Direct (D) or | |
1. Title of Security | Beneficially Owned | Indirect (I) | 4. Nature of Indirect Beneficial Ownership |
(Instr. 4) | (Instr. 4) | (Instr. 5) | (Instr.5) |
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
| | | |
Common Stock | 1,737,596(01) | 02 | 02 |
====================================================================================================================================
</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
*If the form is filed by more than one Reporting Person, see Instruction
5(b)(v).
FORM 3 (continued)
<TABLE>
<CAPTION>
====================================================================================================================================
Table II -- Derivative Securities Beneficially Owned |
(e.g., puts, calls, warrants, options, convertible securities) |
====================================================================================================================================
| | | | | |
| | | | 5. Owner- | |
| | 3. Title and Amount of Securities | | ship | |
| | Underlying Derivative Security | | Form of | |
|2. Date Exercisable | (Instr. 4) | | Derivative | |
| and Expiration Date | --------------------------------- | 4. Conver- | Security: | |
| (Month/Day/Year) | | Amount | sion or | Direct |6.Nature of |
|---------------------- | | or | Exercise | (D) or | Indirect |
|Date |Expira- | | Number | Price of | Indirect | Beneficial|
1. Title of Derivative |Exer- |tion | | of | Derivative| (I) | Ownership |
Security (Instr. 4) |cisable |Date | Title | Shares | Security | (Instr.5) | (Instr. 5)|
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
| | | | | | | |
| | | | | | | |
====================================================================================================================================
</TABLE>
Instruction 5(b)(v) list of other Reporting Persons:
This statement is being filed by Goldman, Sachs & Co. ("Goldman Sachs") and The
Goldman Sachs Group, L.P. ("GS Group" and, together with Goldman Sachs, the
"Reporting Persons"). The principal business address of each of Goldman Sachs
and GS Group is 85 Broad Street, New York, New York, 10004.
Explanation of Responses:
01: The exact amount of shares to be received by Goldman Sachs in connection
with the Issuer's Chapter 11 bankruptcy reorganization has not yet been
determined. Accordingly, the amount of shares set forth herein (all of which are
to be received in connection with such bankruptcy reorganization) is an
estimated amount.
02: The securities reported herein may be deemed to be beneficially owned
directly by Goldman Sachs and may be deemed to be beneficially owned indirectly
by GS Group. GS Group is a general partner of and owns a 99% interest in Goldman
Sachs. GS Group disclaims beneficial ownership of the securities reported herein
except to the extent of its pecuniary interest therein.
<PAGE>
Signatures:
THE GOLDMAN SACHS GROUP, L.P.
By: s/ Hans L. Reich
------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
GOLDMAN, SACHS & CO.
By: s/ Hans L. Reich
------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
Date: April 1, 1999
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, See Instruction 6 for procedure.
Alternatively, this form is permitted to be submitted to the
Commission in electronic format at the option of the reporting person
pursuant to Rule 101(b)(4) of Regulation S-T.
