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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 6, 1998
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 10523-2300
(Address of Principal Executive Offices) Zip Code
Registrant's telephone number, including area code: (914) 592-6677
Former name or former address,
if changed since last report
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Item 3. Bankruptcy or Receivership.
On October 6, 1998, Cityscape Financial Corp. (the "Company") announced
that the Company and Cityscape Corp., the Company's wholly-owned subsidiary
("CSC"), filed a joint prepackaged plan of reorganization (the "Plan")
pursuant to Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of New York. The
proceedings are captioned In re Cityscape Financial Corp. (Case No.
98-B-22569 (ASH)), and In re Cityscape Corp. (Case No. 98-B-22570 (ASH)).
A copy of the press release dated October 7, 1998 is attached to this
report as Exhibit 99.1.
Item 7. Financial Statements Pro Forma Financial
Information and Exhibits.
(c) Exhibits
99.1 Press Release, dated October 7, 1998
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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
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Name: Tim S. Ledwick
Title: Vice President and Chief
Financial Officer
Dated: October 7, 1998
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INDEX TO EXHIBITS
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Exhibits Description
- -------- -----------
99.1 Press Release, dated October 7, 1998
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FOR IMMEDIATE RELEASE
CITYSCAPE FILES CHAPTER 11 PETITION
AND PLAN OF REORGANIZATION
Elmsford, NY, October 7, 1998 - Cityscape Financial Corp. (OTC Bulletin
Board: CYYS) announced today that, having received strong support for its plan
of reorganization by its senior noteholders and convertible subordinated
debenture holders as well as the holders of its Series A Preferred Stock, it has
filed, along with Cityscape Corp., the Company's wholly-owned subsidiary
("CSC"), a joint prepackaged plan of reorganization under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy Court for the
Southern District of New York. The proceedings are captioned In re Cityscape
Financial Corp., and In re Cityscape Corp.
Cityscape had solicited the holders of its senior notes, convertible
subordinated debentures and Series A and Series B Preferred Stock. The Company
noted that the reorganization plan received the requisite approval from all
classes except for holders of the Company's Series B Preferred Stock. The
Company anticipates requesting Court confirmation of the reorganization plan
despite the rejection of the reorganization plan by the holders of the Series B
Preferred Stock.
The Company and CSC will be debtors-in-possession and will continue to
operate their business, subject to the supervision and orders of the Bankruptcy
Court. Separately, the Company announced that it has received commitments from
Greenwich Capital Financial Products, Inc., The CIT Group/Equipment Financing
Inc. and Nomura Asset Capital Corp. to provide $250 million of
debtor-in-possession financing.
The Company announced that it intends to ask the Bankruptcy Court to set a
hearing on confirmation of the reorganization plan as expeditiously as possible,
which the Company anticipates to be in one to two months.
Notwithstanding the foregoing, there can be no assurance that the terms of
the reorganization plan will not change; that the Bankruptcy Court will confirm
the reorganization plan within the anticipated time frame or at all; or that the
reorganization plan will be consummated (even if it is confirmed). In addition,
no assurance can be given that the financing obtained, if at all, by the Company
and CSC as debtors-in-possession will be in amounts necessary to fund the
Company's loan production. Furthermore, even if the Company is successful in
implementing the reorganization plan, no assurance can be given as to the effect
of any such success on the Company's results of operations or financial
condition or that the value of the Company's securities will not suffer further
material impairment beyond that contemplated by the reorganization plan. The
extent of any such impairment will depend on many factors including the factors
set forth in the paragraph discussing forward-looking statements below.
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
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Company's loan production, the successful execution of loan sales in the whole
loan sales market, 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.
CONTACTS:
Steven M. Miller, President and Chief Michele Katz
Executive Officer Morgen-Walke Associates
Cityscape Financial Corp. (212) 850-5600
(914) 592-6677
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