EXHIBIT 99
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UNITED COMPANIES FINANCIAL CORPORATION
[UNITED COMPANIES LOGO]
NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
For More Information,
Contact:
Deborah Hicks Midanek
Chief Executive Officer
225-987-2385 or 800-234-8232
RELEASE DATE: April 28, 1999
United Companies Signs Agreement with Aegis Mortgage Corporation
for
Sale of its Retail Lending Platform, UC Lending(R)
Company Receives Court Approval of Bidding Procedures Motion
Sale Hearing Scheduled for May 11, 1999
Baton Rouge, LA - United Companies Financial Corporation
(OTC: UCFNE) announced today that it signed an agreement on
Tuesday, April 27, 1999 for the sale of its retail lending
platform, UC Lending(R), to Aegis Mortgage Corporation, a
mortgage company based in Houston, Texas. The Company
previously announced on April 16, 1999, that it was close to
an agreement with Aegis for this sale. Under the terms of the
agreement, Aegis will pay $3 million plus the May operating
expenses relating to 126 branch offices and related retail
lending assets. Aegis will also assume the post-closing
obligations under the leases to the 126 branch offices and
under the equipment leases, auto leases and other contracts
and agreements associated with operating these branch offices
and the Baton Rouge head office facilities of the retail
lending platform. In addition, Aegis has agreed to purchase
all of the loans closed by UC Lending(R) during the month of
May. The proposed closing date for the transaction is June 1,
1999. The sale and leases and contracts assignment is subject
to approval by the Bankruptcy Court and higher or better
offers made pursuant to bidding procedures approved April 27,
1999, by the Bankruptcy Court, as well as to satisfaction of
certain other conditions.
Under the bidding procedures, interested parties will have
an opportunity to submit bids on the Company's retail lending
platform no later than May 10, 1999 at 10:00 a.m. Central
Daylight Time. Bids must conform to the requirements of the
bidding procedures. The Bankruptcy Court has scheduled a
hearing on May 11, 1999, to consider the sale of Aegis or to a
higher bidder.
In addition, the Company has been advised that its common
stock is now being quoted in the "over the counter" market
under the stock symbol "UCFNE" and the Company's preferred
stock is now being quoted in that market under the symbol
"UCFPE".
United Companies is a specialty finance company in
reorganization that provides consumer loan products nationwide
through its lending subsidiary, UC Lending(R).
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 and warehouse facilities in amounts necessary to fund the
Company's operations; the successful execution of loan sales in
the whole loan sale market; 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.