Signature Group Holdings, Inc. Names New Management Team and Board of Directors Following Successful Reorganization of Former Financial Services Giant Fremont General Corporation

SHERMAN OAKS, Calif. and NEW YORK, July 20 /PRNewswire-FirstCall/ -- Special  situation lender and investor Signature Group Holdings, Inc. (Pink Sheets: SGGH),  successor to recently reorganized Fremont General Corporation, has elected a new Board of Directors and appointed an executive team following its successful emergence from Chapter 11 bankruptcy proceedings last month.

Signature will emphasize a business model that focuses on  credit-oriented special situation lending and investments in middle-market  companies nationally.  Prior to  bankruptcy, Fremont General Corporation was a $7 billion financial institution  with interests in banking, insurance and commercial finance; its wholly-owned  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 Corporation 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 2010 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.

Craig Noell,  47, has been named president and CEO of Signature Group Holdings, Inc.  Mr. Noell has served as Managing Director  and CEO of Signature Group Holdings, LLC since 2004.  Signature operates as an investor and  investment manager employing credit driven strategies, including distressed debt  investments and special situation loan originations.  

"Using  the platform of the former Fremont General, we are very excited about writing a  new chapter for Signature and confident that our new management and board slate  can elevate the company into a leader in middle-market lending and investment, a sector that continues  to be starved for capital," Mr. Noell said.  "With our team in place, our  shareholders can be confident that we have the expertise and talent to take  Signature to the next level."

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 of Directors of Signature. 

"Middle market lending remains one of the biggest  causalities of the economic downturn, with many providers exiting the market and  conventional lenders pulling back significantly," Mr. Nickoll noted.  "There is a major opportunity for  Signature to make an impact in offering vital credit and investment capital for  mid-market companies, for operating purposes, mergers and acquisitions,  restructurings, and a host of special situations."

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.  Mr. 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 first few months following a reorganization  typically represent the most challenging period for a turnaround," Mr. Peiser  said. "Having assembled a collegial group of experienced veterans, who bring  substantial experience in special situation credit and commercial finance, will  greatly enhance the viability of our business model."  

The  rest of the board members include Mr.  Noell, along  with Kenneth Grossman,  Michael Blitzer, John Koral, Richard A. Rubin, Norman Matthews and Robert  Schwab.   The board has already established  various key corporate governance committees, including audit, compensation,  legal, executive and governance and nominating  committees.

Rounding out the Signature executive team  are:

Kenneth Grossman,  54, a  veteran turnaround professional and distressed investor has been appointed co-Executive Vice President.  Mr. 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.  Mr. Grossman  has served in leadership roles for several investment firms, including Ramius,  LLC, Del Mar Asset Management, L.P., and Alpine Associates, LP.  Mr. Grossman was responsible for  evaluating new investments and managing existing investments at each  firm.

Kyle Ross,  33, has been named co-Executive Vice President along with Mr. Grossman.  Mr. Ross has also served as a managing  director of Signature Capital Advisers, LLC, evaluating new investments and  managing existing investments.  SCA  has employed credit-driven strategies, including distressed debt investments and  special situation loan originations.

The  terms of the new leadership team were outlined in a Current Report on Form 8-K  filed July 15 with the Securities and Exchange Commission: http://biz.yahoo.com/e/100715/sggh.pk8-k.html.  

"We are in a great position here following the Fremont  General reorganization and installation of a first-rate leadership team to turn  Signature Group Holdings, Inc. into a serious player in commercial finance," Mr.  Grossman said.  "So many  middle-market companies are eager for funding – for expansion, for transactions,  to pay off existing debt.  We are  looking forward to stepping in with capital and expertise to help advance  business recovery in this critical segment of the  economy."

About Signature Group Holdings, LLC  

Formed in 2004, Signature Group Holdings, LLC, is  a credit-oriented special situations investor with a track record of  successfully acquiring, originating and managing debt investments.  Additional information about Signature  can be found on its website www.Signaturecap.com.  Signature is headquartered in Sherman  Oaks, CA with a presence in New York, NY.

Cautionary Statements

This news release contains forward-looking  information.  Statements contained  in this news release relating to future results, events and expectations are  forward-looking statements within the meaning of Section 27A of the Securities  Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934,  as amended. These forward-looking statements may involve known and unknown risks  and other factors and uncertainties which may cause the actual results to be  materially different from those expressed or implied by such statements.  Signature does not have any intention or obligation to update forward-looking  statements included in this press release after the date of this press release,  except as required by law. No stock exchange or regulatory authority has  approved or disapproved of the information contained herein.  

SOURCE Signature Group Holdings, Inc.