Wilshire Credit Corporation seems to have experienced credit problems of it's own:
Capital Consultants collapsed after Wiederhorn's Wilshire Credit Corp. borrowed $160 million and failed to repay the money.
A criminal investigation continues in the case.
In Capital Consultants settlement, Wilshire to buy back share of credit subsidiary
Business Journal of Portland, May 14, 2002
As part of its settlement of civil litigation over the Capital Consultants collapse, Wilshire Financial Services Group (OTCBB: WFSG) said it will buy back the half ownership of subsidiary Wilshire Credit Corp. held by Capital Consultant's receiver.
The agreement calls for former Wilshire executives Andrew Wiederhorn and Larry Mendohlson and their families and the executives' current company, Fog Cutter Capital Group, to pay $29.5 million to the victims of the Capital Consultants debacle, according to a Wilshire document filed Tuesday with the Securities and Exchange Commission. Wilshire will pay an additional $10.5 million to recover the 49.99 percent share of Wilshire Credit Corp. held by the receiver, making WCC again a wholly-owned subsidiary of Wilshire.
The cash cost to Wilshire of the settlement and stock acquisition will total about $15 million, the company said, plus a share of the proceeds from the anticipated sale of a piece of real property. Wilshire said it expects to accrue a first-quarter 2002 pre-tax expense of $3.6 million in connection with the agreement, "expected to eliminate most of the company's future costs arising from" the Capital Consultants affair.
The agreement involving the Wilshire-related parties is part of a much broader settlement negotiated between many defendants involved in the litigation over Capital Consultants, a Portland money management firm accused of losing hundreds of millions of dollars, primarily from labor union trust funds, in Ponzi-like schemes. Eleven other parties, including major law and accounting firms, joined Wilshire in settling claims.
The 12 defendants participating in the settlement, backed in large part by their insurance companies, will pay a total of $110 million, the Oregonian reported Tuesday. Combined with previous settlements and asset sales, the agreement should yield 57 cents for every dollar lost by Capital Consultants.
In the mid-1990s, the Portland firm loaned $160 million of its clients' money to a subsidiary of Wilshire Financial Services Group Inc., which was based in Beaverton. But money troubles started piling up for Wilshire Financial, and the company filed for Chapter 11 bankruptcy reorganization in March 1999.
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YFP. Now, imagine the irony. New York City homeowners are now begin foreclosed upon by a company, Wilshire Financial Corporation, that declared bankruptcy itself in 1999.
Capital Consultants collapsed after Wiederhorn's Wilshire Credit Corp. borrowed $160 million and failed to repay the money.
A criminal investigation continues in the case.
In Capital Consultants settlement, Wilshire to buy back share of credit subsidiary
Business Journal of Portland, May 14, 2002
As part of its settlement of civil litigation over the Capital Consultants collapse, Wilshire Financial Services Group (OTCBB: WFSG) said it will buy back the half ownership of subsidiary Wilshire Credit Corp. held by Capital Consultant's receiver.
The agreement calls for former Wilshire executives Andrew Wiederhorn and Larry Mendohlson and their families and the executives' current company, Fog Cutter Capital Group, to pay $29.5 million to the victims of the Capital Consultants debacle, according to a Wilshire document filed Tuesday with the Securities and Exchange Commission. Wilshire will pay an additional $10.5 million to recover the 49.99 percent share of Wilshire Credit Corp. held by the receiver, making WCC again a wholly-owned subsidiary of Wilshire.
The cash cost to Wilshire of the settlement and stock acquisition will total about $15 million, the company said, plus a share of the proceeds from the anticipated sale of a piece of real property. Wilshire said it expects to accrue a first-quarter 2002 pre-tax expense of $3.6 million in connection with the agreement, "expected to eliminate most of the company's future costs arising from" the Capital Consultants affair.
The agreement involving the Wilshire-related parties is part of a much broader settlement negotiated between many defendants involved in the litigation over Capital Consultants, a Portland money management firm accused of losing hundreds of millions of dollars, primarily from labor union trust funds, in Ponzi-like schemes. Eleven other parties, including major law and accounting firms, joined Wilshire in settling claims.
The 12 defendants participating in the settlement, backed in large part by their insurance companies, will pay a total of $110 million, the Oregonian reported Tuesday. Combined with previous settlements and asset sales, the agreement should yield 57 cents for every dollar lost by Capital Consultants.
In the mid-1990s, the Portland firm loaned $160 million of its clients' money to a subsidiary of Wilshire Financial Services Group Inc., which was based in Beaverton. But money troubles started piling up for Wilshire Financial, and the company filed for Chapter 11 bankruptcy reorganization in March 1999.
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YFP. Now, imagine the irony. New York City homeowners are now begin foreclosed upon by a company, Wilshire Financial Corporation, that declared bankruptcy itself in 1999.
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ReplyDeleteHoly shit hahaha that's a real problem for this poor guy, I wonder if he's going to overcome this...
ReplyDelete