California-based special situation lender and investor Signature Group Holdings Inc., successor to recently reorganized Fremont General Corp., has elected a new board of directors and appointed an executive team following its emergence from Chapter 11 bankruptcy proceedings last month.
Prior to bankruptcy, Fremont General Corp. was a $7 billion financial institution with interests in banking, insurance and commercial finance. Its subsidiary, Fremont Investment & Loan, was one of the country’s top five originators of subprime residential loans. When the subprime market collapsed in 2007, Fremont General Corp. came under pressure by regulators and elected to file for Chapter 11 bankruptcy protection in June 2008 in order to implement its restructuring program.
Signature emerged from Chapter 11 in June under a plan of reorganization led by Signature Group Holdings LLC. One of the key features of the plan of organization was an estimated $769 million (unaudited) of federal net operating loss carry-forwards expected to be available to offset future taxable income.
The new executive team and board include:
Craig Noell, 47, has been named president and CEO of Signature Group Holdings Inc. Noell has served as managing director and CEO of Signature Group Holdings since 2004. Signature operates as an investor and investment manager employing credit driven strategies, including distressed debt investments and special situation loan originations.
John Nickoll, founder of Foothill Capital Corp., formerly the country’s largest independent commercial finance company prior to merging with Wells Fargo, has been named chairman of the board.
Robert A. Peiser, a veteran turnaround executive who has served as CEO of several national companies – including Omniflight Helicopters, Inc. and Imperial Sugar Co. – has been named Vice Chairman and will also chair Signature’s Audit Committee as management implements a plan to bring the company back into SEC compliance. Peiser, who also served two separate tours as CFO of Trans World Airlines, brings strong corporate governance experience to his new role with Signature’s board.
The rest of the board members include Noell, along with Kenneth Grossman, Michael Blitzer, John Koral, Richard A. Rubin, Norman Matthews and Robert Schwab.
Rounding out the Signature executive team are:
Kenneth Grossman, 54, a veteran turnaround professional and distressed investor, has been appointed co-executive vice president. Grossman, a former corporate lawyer, also serves as managing director of Signature Capital Advisers LLC, which has entered into an interim investment management agreement with the newly reorganized company.
Kyle Ross, 33, has been named co-executive vice president along with Grossman. Ross has also served as a managing director of Signature Capital Advisers LLC, evaluating new investments and managing existing investments.
