Foothill Group Completes $3-Million Stock Sale

Foothill Group Inc. said it completed the previously announced sale of convertible preferred stock to an investment partnership for $3 million, which the company has invested in its Foothill Thrift & Loan subsidiary.

The investor group, Recovery Equity Investors L.P., purchased 100,000 convertible preferred shares that can be converted to about 6% of Foothill Group’s common stock. Recovery Equity, a San Mateo partnership that specializes in investing in troubled companies, added two representatives to Foothill’s board, which now has eight directors.

Foothill, which has executive offices in Agoura Hills and Los Angeles, was under pressure from banking regulators to raise cash to shore up the capital base of Foothill Thrift & Loan. Capital is the reserve that financial institutions must set aside to protect themselves against future losses.