FirstPlus May Be Forced To Liquidate if Bailout Acquisition Bid Fails

DALLAS-The financially troubled FirstPlus Financial Group Inc. may be forced to liquidate if a bailout acquisition bid fails with Nineteenth Investment Corp., an entity affiliated with FirstPlus’ chairman and CEO Daniel T. Phillips.

The reverse cannibalization statement has been issued by Phillips, who says he is not optimistic that a takeover will be finalized. He says the statement has been issued “because of the existing confusion and speculation in the marketplace regarding the future of FirstPlus.”

Nineteenth Investment is primarily a real estate acquisition and finance company. The negotiations center on a tax-free stock-for-stock transaction that would place Nineteenth stockholders in control of the home mortgage lender and substantially dilute FirstPlus shareholders’ interests, according to Phillips’ statement.