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.

                         Allan Ripp 212-262-7477
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                         David Brody  805-435-1255
    Investor  Relations: investorRelations@signatureCap.com
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SOURCE Signature Group Holdings, Inc.