SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report: August 26, 1999
(Date of earliest event reported)
Morgan Stanley Capital I Inc.
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(Exact name of registrant as specified in its charter)
Delaware 333-62911-04 13-3291626
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(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
1585 Broadway, New York, N.Y. 10036
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 761-4000
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ITEM 5. OTHER EVENTS.
RECENT DEVELOPMENTS
On August 10, 1999, General American Life Insurance Company ("GAL"), the
majority seller of the mortgage loans, announced that it was unable to meet
substantial demand for surrenders arising from its funding agreement business
without jeopardizing interests of its other policyholders. GAL also announced
that it was placed under an order of administrative supervision by the Missouri
Department of Insurance, which means that such department has the power to
approve or veto major decisions of GAL. In addition, the insurance financial
strength rating of GAL has been downgraded from "A2" to "Ba1" by Moody's
Investors Service, and from "AA-" to "R" by Standard & Poor's. A rating of "R"
from Standard & Poor's means the insurer has experienced a regulatory action.
There can be no assurance that the financial condition of GAL will not
further deteriorate, that the insurance financial strength ratings will not be
further downgraded, or that the events described herein will not adversely
affect the ability of GAL to fulfill its obligation to repurchase any mortgage
loan if certain document defects or breaches of representations or warranties
occur, as described on pages S-87 and S-88 of the Prospectus Supplement.
As described on pages S-89 and S-90 of the Prospectus Supplement, Conning
Asset Management Company, the Master Servicer and Special Servicer, is a
majority-owned subsidiary of GAL. There can be no assurance that the financial
condition of GAL would not have an adverse impact on Conning's ability to meet
its obligations as Master Servicer or Special Servicer.
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on behalf of the
Registrant by the undersigned thereunto duly authorized.
MORGAN STANLEY CAPITAL I INC.
By: /s/ RUSSELL RAHBANY
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Name: Russell Rahbany
Title: Vice President
Date: August 26, 1999
