HomeGold Financial, Inc. Completes Sale of Sterling Lending Corporation for $1.5 Million.GREENVILLE, S.C.--(BUSINESS WIRE)--Aug. 31, 1998--HomeGold Financial, Inc. (Nasdaq/NM:HGFN) (formerly Emergent Group, Inc. - Nasdaq/NM:EMER) (the "Company") today announced that it has completed the sale of Sterling Lending Corporation, a small mortgage retail branch origination network for non-prime home mortgage loans, for $1.5 million. The sales proceeds consisted of $400,000 in cash and a promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. for $1.1 million. The purchaser of the stock of Sterling Lending Corporation was FNSC FNSC Food and Nutrition Science Mortgage Corporation located in Beaumont, Texas Beaumont is a city and county seat of Jefferson County, Texas and is within the Beaumont-Port Arthur metropolitan area. As of the 2000 U.S. Census, the city had a population of 113,866. . Sterling Lending Corporation originated $39.4 million in mortgage loans in the first seven months of 1998, or an average of $5.6 million per month, and incurred an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.8 million for the seven months ended July 31, 1998. Sterling Lending Corporation has approximately 135 employees, none of which are located in Greenville. Kevin J. Mast, the Company's Chief Financial Officer, stated, "This divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). will allow the Company to focus on building its brand name recognition under the HomeGold trademark through its regional operating center approach." HomeGold Financial, Inc. is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company, which originates, services, and sells non-prime first and second lien A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the residential mortgage loans and loans to small businesses. HomeGold currently has approximately 920 employees and operates in 42 states. Except for historical information contained herein, the matters set forth in this document are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. For more complete information concerning factors which could affect the Company's financial results, reference is made to the Company's registration statements, reports and other documents filed with the U.S. Securities and Exchange Commission.
CONTACT: HomeGold Financial Inc., Greenville
Kevin J. Mast or Robert S. Davis, 864/235-8056
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