Cypress Financial Services Initiates Restructuring Plan

Hoping to return to profitability and revive its sagging stock price, Cypress Financial Services is starting the new year with a restructuring plan designed to cut $1 million from its operating costs.

The Cypress-based debt-collection firm also named a new chief executive to implement the plan. John Hindman, who has served as chief financial officer at Cypress over the last year, has taken the additional responsibilities of CEO. Hindman will also serve on the board.

Under the restructuring plan, about 40% of the cost savings will come from consolidating executive positions at the company.

Manuel Occiano, who took over as chief executive about 14 months ago, has left the company. Co-founders Farrest Hayden and Otto Lacayo also relinquished their day-to-day responsibilities, though they continue to serve on the company’s board.

The cost-reduction program “is intended to restore the company to profitability in the very near term,” Hindman said.

Cypress has been trying to position itself in the once-promising business of buying delinquent, written-off credit card debts from banks for pennies on the dollar and then trying to collect from borrowers.

But the company lost about $1.3 million during the nine months ended June 30, the most recent figures available. The company’s stock, which traded above $3 a share in 1997, closed Wednesday at 75 cents a share.

One of the company’s biggest shareholders is Newport Beach-based Pacific Life Insurance Co., which holds about a 35% stake.