The first would "hold the assets of HQ Global Workplaces," andthe second would "hold that of our other assets," Rechlerexplained. "We're seeking to capitalize each entity separately overtime," in an effort to prove to stockholders that HQ is valuable.Also, he said, "Frontline is going to cease all new investing."

The company has reduced its staff by 75%, Rechler stated. Healso said FrontLine had $15 million in cash and debt of $125million, making the company "maxed out" in terms of available debt.HQ currently has $250 million in debt, but the hope is to make itself-financing, something Rechler asserted is attainable for acompany he said will "be at the leading edge of change for the next10 years."

FrontLine will own 57% of HQ, but will not have access to itscash flow. Rechler said an IPO could be in its future, somethingits "only competitor" has done. Rechler noted that the IPO statusof its competition "validates the business."