FOG CUTTER CAPITAL GROUP INC. FORMS CAPITAL MARKETS SUBSIDIARY
June 4, 2002
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FOR:
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FOG CUTTER CAPITAL GROUP INC.
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CONTACT:
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Fog Cutter Capital Group Inc.
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(503) 721-6500 Andrew A. Wiederhorn, Chairman and CEO
(503) 721-6500 Robert Rosen, Executive Vice President
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For Immediate Release
FOG CUTTER CAPITAL GROUP INC. FORMS CAPITAL MARKETS SUBSIDIARY
PORTLAND, Oregon- June 4, 2002 - Fog Cutter Capital Group Inc. (Nasdaq:FCCG), a diversified investment group specializing in mortgage and real estate related assets, has announced the formation of Fog Cutter Capital Markets Inc., a New York based, wholly owned subsidiary, specializing in mortgage-backed and asset-backed securities.
Robert Rosen, Executive Vice President of Fog Cutter Capital Group Inc. has been named President of Fog Cutter Capital Markets Inc. "We are extremely confident in Rob's proven ability to take advantage of the opportunities that exist in these sectors", says Fog Cutter Capital Group Chairman and CEO Andrew Wiederhorn.
The Company intends to transfer one hundred percent of its holdings of mortgage backed and asset backed bonds as well as additional capital into Fog Cutter Capital Markets Inc.
"By transferring the Company's bond position into Fog Cutter Capital Markets Inc., plus the commitment of additional capital, we have arranged attractive non-recourse financing facilities which enable us to act quickly and in larger size and protect us in the event of a severe market downturn" said Rosen.
Founded in 1997, Fog Cutter Capital Group Inc. focuses on investing, structuring and managing real estate-related assets, including the acquisition of companies engaged in real estate investment activities, mortgage-backed securities, mezzanine real estate loans and other real estate related assets. The Company invests where its expertise in intensive asset management, mortgage and real estate credit analysis and financial structuring can create value. Many of these investments, particularly in corporate acquisitions, are acquired in conjunction with partners.
The Company seeks to invest directly or indirectly in real estate-related assets that provide an appropriate risk-adjusted rate of return and the opportunity for capital gains. The Company maintains a flexible approach with respect to the nature of its investments, seeking to take advantage of opportunities as they arise or are developed.
Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements. All of the statements contained in this release, which are not identified as historical, should be considered forward-looking. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of the company which are identified as forward-looking, the company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. Such factors include but are not limited to, the real estate market, the availability of real estate assets at acceptable prices, the availability of financing, interest rates, and European markets. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. The forward-looking statements have not been audited by, examined by, or subjected to agreed-upon procedures by independent accountants, and no third party has independently verified or reviewed such statements. Readers of this release should consider these facts in evaluating the information contained herein. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by the company or any other person that the forward-looking statements contained in this release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.
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