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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): November 17, 1998
CITYSCAPE FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
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DELAWARE 0-27314 11-2994671
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State or Other Jurisdiction Commission (IRS Employer
of Incorporation File Number Identification No.)
565 Taxter Road, Elmsford, New York 10523-2300
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(Address of Principal Executive Offices) Zip Code
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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 November 17, 1998, Cityscape Financial Corp. (the "Company") decided
to suspend indefinitely all of its loan origination and purchase activities. The
Company is notifying its brokers that it has ceased funding mortgage loans,
other than loans that are in its origination pipeline for which it had issued
commitments. The Company anticipates that it will continue to process such
committed loans through the Company's debtor-in-possession financing facilities.
The Company's decision is due to its determination, following discussions with
potential lenders regarding post-reorganization warehouse financing, that
adequate sources of such financing are not available. With no adequate sources
of such financing, the Company has determined that it is unable to continue
operations. As a result of the cessation of all of the Company's origination and
purchase activities, the Company will further downsize its operations and reduce
its workforce and will record an additional restructuring charge in addition to
those disclosed in the Company's Form 10-Q dated November 16, 1998. The Company
is taking steps to preserve the value of its assets for the benefit of its
creditors and securityholders and anticipates maintaining sufficient staffing to
oversee the servicing of the Company's loan portfolios and the Company's
operations during the bankruptcy proceedings and related matters. The Company is
currently evaluating the potential transfer of such servicing and, should such
transfer occur, will adjust its staffing accordingly.
A Bankruptcy Court hearing to consider confirmation of the Company's
previously filed plan of reorganization under Chapter 11 of the Bankruptcy Code
was originally scheduled for November 13, 1998 and had been adjourned to
November 19, 1998. The Company anticipates that there will be a further
adjournment of such hearing due to the developments discussed herein. The
schedule and the procedures with respect to confirmation of the plan may be set
by the Court at the hearing on November 19, 1998 or at an adjourned hearing
subsequent thereto.
There can be no assurance: (i) as to when, if ever, the Company's loan
origination and purchase activities will resume; (ii) that the terms of the
Company's plan of reorganization will not change; (iii) that the Bankruptcy
Court will confirm such plan within the previously anticipated time-frame, if at
all; or (iv) that such plan will be consummated (even if it is confirmed).
This press release contains forward-looking statements which involve
risks and uncertainties. The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a result of
certain factors including, but not limited to, the ability to access loan
warehouse or purchase facilities in amounts, if at all, necessary to fund the
Company's loan production, the successful execution of loan sales in the whole
loan sales market, the confirmation and consummation of the Company's plan of
reorganization under Chapter 11 of the Bankruptcy Code, the ability of the
Company to successfully restructure its balance sheet, the initiative to
streamline the Company's operations, the ability of the Company to retain an
adequate number and mix of its employees, legal proceedings and other matters,
adverse economic conditions, competition and other risks detailed from time to
time in the Company's Securities and Exchange Commission reports. The Company
undertakes no obligation to release publicly any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of anticipated or unanticipated events.
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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/Tim S. Ledwick
Name: Tim S. Ledwick
Title: Vice President and Chief
Financial Officer
Dated: November 18, 1998
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