Investment Firm to Sell Stake in Foothill Group

An investment company that owns about 38% of the Class A common stock of The Foothill Group, an Agoura Hills-based financial company, plans to sell its entire stake, according to a filing with the Securities and Exchange Commission.

Santa Cruz Resources, an indirect subsidiary of Tucson Electric Power Co., which has been suffering financial troubles recently, said it “intends to pursue in the near future the sale of all of the Common Stock.”

According to the filing, Foothill also completed a debt restructuring involving another indirect subsidiary of Tucson Electric.

Under the restructuring, the subsidiary--Sabino Investing, Inc.--agreed to convert a $12.5-million revolving credit facility, which was scheduled to mature in November, into a new $12.5-million term loan, which will mature in 1996. The collateral for the new loan is all the common stock of Foothill Thrift & Loan, a subsidiary of The Foothill Group.

According to the filing, some holders of Foothill notes required that the Sabino loan be restructured before agreeing to convert and extend the due date on their $23.1 million in notes.