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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 21, 1997
CITYSCAPE FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
DELAWARE 0-27314 11-2994671
State or Other Jurisdiction Commission (IRS Employer
of Incorporation File Number Identification No.)
565 Taxter Road, Elmsford, New York 10523-5200
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(Address of Principal Executive Offices) Zip Code
Registrant's telephone number, including area code: (914) 592-6677
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Former name or former address,
if changed since last report
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Item 5. Other Events.
On October 21, 1997, Cityscape Financial Corp. issued a press release
announcing its retention of Bear, Stearns & Co. Inc. as financial advisor to
explore strategic alternatives for the Company. A copy of this press release,
dated October 21, 1997, has been filed with this Form 8-K as Exhibit 99.1 and
is hereby incorporated by reference.
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Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(c) Exhibits
99.1 Press Release, dated October 21, 1997
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Current Report on Form 8-K to be signed on
its behalf by the undersigned hereunto duly authorized.
CITYSCAPE FINANCIAL CORP.
(Registrant)
By: /s/ Robert C. Patent
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Name: Robert C. Patent
Title: Executive Vice President
Dated: October 22, 1997
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INDEX TO EXHIBITS
Exhibits Description Page
99.1 Press Release, dated October 21, 1997
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NEWS RELEASE . . . .
CONTACT: Robert C. Patent, EVP
Tim S. Ledwick, CFO
Cityscape Financial Corp.
(914) 592-6677
FOR IMMEDIATE RELEASE
Michele Katz/Geoffrey Buscher/
Jason Langer
Press: Stan Froelich/
Elisabeth Philippe
Morgen-Walke Associates
(212) 850-5600
CITYSCAPE RETAINS FINANCIAL ADVISOR
ELMSFORD, NY, October 21, 1997 -- Cityscape Financial Corp. (Nasdaq:CTYS) today
announced it has retained Bear, Stearns & Co., Inc. to explore strategic
alternatives for the Company. The Company stated that it has sufficient
liquidity to fund its operations and meet all of its obligations into the latter
portion of the first quarter of 1998. It also announced it is in the process of
hiring a special outside servicer with the specific expertise to better manage
those loans that are delinquent 90 days or more. The Company's UK subsidiary
City Mortgage Corporation Limited believes its operation is substantially in
compliance with the guidelines for non-status lenders, issued by the Office of
Fair Trading (OFT) in July 1997. The Company also stated that it is continuing
its discussions with the OFT to resolve outstanding issues with respect to the
guidelines, including those associated with the Company's existing loan
portfolio.
Cityscape expects to report its third quarter financial results during the week
of November 3, 1997. The Company expects its third quarter results will be
materially below analysts' expectations.
As part of its strategy to enhance liquidity, the Company anticipates deploying
a number of initiatives, including the use of whole loan sales. Whole loan
sales, unlike loan sales through securitization, are immediately cash flow
positive but will produce lower margins and, therefore, will negatively impact
the Company's earnings. Other liquidity initiatives will likely have a similar
effect on cash flow and earnings.
This press release may contain forward-looking statements, involving risks and
uncertainties that are detailed in the Company's filing with the Securities and
Exchange Commission.
Cityscape Financial Corp. is a consumer finance company. Through its wholly
owned subsidiaries, Cityscape Corp. and City Mortgage Corporation Limited, it
engages in the business of originating, purchasing, selling and servicing home
equity mortgage loans, secured primarily by one- to four-family residences, in
the United States and the United Kingdom. Cityscape was founded in 1985. It is
headquartered in Elmsford, New York and has regional processing offices in
California, Georgia, Illinois and Virginia.
[MORGEN-WALKE LETTERHEAD]
