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FREMONT FINANCIAL FINANCING OF IDLE PROCTOR & GAMBLE PAPER MILL WILL RESTORE JOBS, HELP ECONOMY IN MICHIGAN

 CHEBOYGAN, Mich., Oct. 19 /PRNewswire/ -- An idled Proctor & Gamble Paper Products manufacturing plant in Cheboygan has been acquired by Great Lakes Tissue Co. through a $5.0 million credit facility provided by Fremont Financial Corp.
 Fremont Financial is the California-based asset lending subsidiary of Fremont General Corp. (NYSE: FMT). The company's Detroit office arranged the transaction. Fremont's funding was in addition to a $3 million HUD-guaranteed block grant from the city of Cheboygan.
 When Proctor & Gamble closed the plant in 1990, the city lost 300 jobs, raising unemployment figures in the region to above 25 percent, according to Fremont's Kenneth Demski, vice president in the firm's Detroit office. With the re-opening of the plant, Demski predicted that 200 jobs will be restored over the next 24 months.
 "This is a major economic and emotional boost for an area that has been economically depressed since Proctor & Gamble closed the plant," Demski said. "The plant was the major employer in town, and when it went away, so did most of the jobs."
 The new operation will be led by Clarence Roznowski, current president of Great Lakes Tissue and a former senior executive with Proctor & Gamble at the Cheboygan plant. He also is one of two major investors in the new operation.
 Kent Hogan, who owns and manages the Laurel Hill Paper Co. and a paper products sales and marketing operation in North Carolina, also has become an equity investor in the new plant.
 According to Fremont's Demski, the plant's heavy manufacturing equipment was expertly mothballed by Proctor & Gamble when it closed the plant in 1990. Since that time, Proctor & Gamble has kept a crew on site to maintain the equipment, which is now being made operational.
 The new plant will deliver its first products within four weeks of re-opening, Demski noted, because of the expert manner in which the physical plant and equipment were maintained.
 "It's not often enough that those of us in the financial community get to see such positive and tangible results from our lending efforts," said Demski. "In this case we were able to work with the undersecretary of HUD, the governor's office and the mayor of Cheboygan to bring about this very positive result."
 Founded in 1969, Fremont Financial Corp. is a leading asset-based lending institution serving commercial clients throughout the United States. Headquartered in Los Angeles, the firm has offices in New York, Chicago, Minneapolis, Atlanta, Cleveland, Detroit, Richmond, Va., and Charlotte, N.C.
 -0- 10/19/93
 /CONTACT: Robert N. Tenney, Fremont Financial, 310-315-5550; or Keith Karpe, Pondel Parsons & Wilkinson, 310-207-9300/
 (FMT)


CO: Fremont Financial Corp.; Proctor & Gamble Paper Products;
 Great Lakes Tissue Co. ST: California, Michigan IN: FIN SU:


LS-LM -- LA005 -- 3802 10/19/93 09:31 EDT
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Publication:PR Newswire
Date:Oct 19, 1993
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