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FirstPlus Financial Group, Inc. |
FirstPlus Financial Group, Inc. (NYSE: FP) was a multi-billion dollar mortgage company specializing in high loan to value second mortgages. The Company's ability to securitize and sell its warehoused loans dried up overnight due to a change in Wall Street's attitude towards this type of paper.
Lee Katz restructured the operating subsidiary, FirstPlus Financial, Inc., in a Chapter 11 Bankruptcy, while he renegotiated over $1 billion in bond and trade debt. Katz streamlined operations at 75 under-performing loan production offices and coordinated the parent's involvement in the bankruptcy of the subsidiary.
FirstPlus Financial Group, the parent company, was able to successfully restructure outside of a bankruptcy, while FirstPlus Financial, Inc., the subsidiary, successfully emerged from bankruptcy in April 2000.
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