IN RE MEGO FINANCIAL CORP

GREGG ZIVE, Chief Judge

C. ALAN BENTLEY, Chapter 7 Trustee (the "Trustee") of the captioned Debtors, by and through his counsel, has moved the Court for entry of an Order approving a compromise and settlement with Jerome J. Cohen, Herbert B. Hirsch, Don A. Mayerson, John E. McConnaughy, Jr., Robert E. Nederlander, Sr., Leonard Toboroff, Wilbur L. Ross, Jr., Eugene I. Schuster, Charles G. Baltuskonis, Gary Jeppesen, Comay Corp., Growth Realty, Inc., HH Financial, Inc. and ERR Corp. (formerly known as RER Corp.), who together comprise the defendants named in the adversary proceeding styled: Bentley v. Cohen, et al., Adv. Pro. No. 05-05057 (Bankr. D. Nev.) (the "Lawsuit"). The Court makes the following findings of fact and conclusions of law in support of the accompanying Order approving the compromise and settlement of the Lawsuit:

1. The findings of fact and conclusions of law placed on the record by the Court at the August 3, 2006 hearing on the Trustee's motion for approval of the settlement of the Lawsuit (the "Hearing") are incorporated herein.

2. The Court concludes that it has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334, that the Motion presents a core proceeding pursuant to 28 U.S.C. § 157(b)(2), and that the Court has the power to enter this Order.

3. At the Hearing, the Court heard testimony from C. Alan Bentley, the Chapter 7 Trustee of Mego. The Court found Mr. Bentley's testimony to be credible. Based on Mr. Bentley's testimony, the Court finds that the settlement of the Lawsuit was negotiated in a non-collusive, arm's-length and good-faith manner.

4. The Trustee provided proper notice of the proposed settlement to all parties in interest and such parties had reasonable opportunity to conduct discovery on the proposed settlement, to file written objections to the settlement, and to present at the Hearing any evidence in support of their position. Approval of the proposed settlement does not infringe the due process rights of any party.

5. The Court finds that no party has challenged the economic basis for the settlement. The only objections to the proposed settlement relate to the Bar Order that is incorporated into the settlement. For the reasons stated in Court, such objections all are overruled.

6. Under the standards in this Circuit governing the approval of such settlement agreements, the Trustee has satisfied his burden of establishing that the proposed compromise and settlement is fair, equitable and in the best interests of the Debtors, their Estates, their creditors, and other parties in interest, and protects and preserves the rights of the non-settling parties.