Exhibit 99.1
FOR IMMEDIATE RELEASE
FIRSTPLUS FINANCIAL GROUP, INC.
ADDRESSES STOCKHOLDER QUESTIONS CONCERNING DISTRIBUTIONS FROM
THE FPFI CREDITOR TRUST
July 12, 2007
IRVING, Texas, /PRNewswire/ -- The Board of Directors of FIRSTPLUS Financial
Group, Inc. (the "Company") (Pink Sheets: FPFX.PK) is issuing this press release
to address stockholder inquiries and to correct misunderstandings concerning the
FPFI Creditor Trust.
In March 1999, two wholly-owned subsidiaries of the Company, one of them
FirstPlus Financial, Inc. ("FPFI"), filed for reorganization under Chapter 11 of
the United States Bankruptcy Code. Under FPFI's plan of reorganization,
subsequently confirmed by the Bankruptcy Court, the assets, present and future,
of FPFI were transferred to a trust (the "FPFI Creditor Trust") administered by
an independent trustee. The Company has no control over FPFI or the Creditor
Trust and has no interest in the assets of FPFI, other than its interest in the
anticipated but uncertain cash flow from payments from the FPFI Creditor Trust
to the Company on account of the Company's allowed unsecured claim against FPFI
(the "Intercompany Claim").
In 2002, the Company established the FirstPlus Financial Group, Inc. Grantor
Residual Trust (the "Grantor Trust") and assigned to it the Company's then
remaining interest in the Intercompany Claim. Under the terms of a settlement
agreement with the petitioners in a 2006 action against the Company, it agreed
that upon receipt by the Grantor Trust of funds in respect of the Intercompany
Claim, the Company would cause the Grantor Trust, subject to certain
limitations, to distribute 50% of such funds annually to stockholders of the
Company.
The sole source of required distributions from the Grantor Trust to stockholders
is distributions from the FPFI Creditor Trust to the Grantor Trust. The Company
does not know if and when additional distributions will be made from the FPFI
Creditor Trust and is unable to influence the independent trustee's decisions in
this regard.
Stockholders of the Company may wish to consult the FPFI Creditor Trust's
website, WWW.FPFICREDITORSTRUST.COM, or to contact the independent trustee,
David Obergfell, at 400 North St. Paul Street, Suite 600, Dallas, Texas 75201,
(214) 923-7592, for additional information regarding future distributions.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the "safe
harbor" provisions under Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995. The Company
uses forward-looking statements in its description of its plans and objectives
for future operations and assumptions underlying these plans and objectives, as
well as in its expectations, assumptions, estimates and projections about the
Company's business and industry. These forward-looking statements involve risks
and uncertainties. The Company's actual results could differ materially from
those anticipated in such forward-looking statements as a result of certain
factors as more fully described in this report.
Forward-looking terminology includes the words "may", "expects", "believes",
"anticipates", "intends", "projects" or similar terms, variations of such terms
or the negative of such terms. These forward-looking statements are based upon
the Company's current expectations and are subject to factors and uncertainties
which could cause actual results to differ materially from those described in
such forward-looking statements. The Company expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements contained in this report to reflect any change in its
expectations or any changes in events, conditions or circumstances on which any
forward-looking statement is based.
