Cityscape Retains Financial Advisor.ELMSFORD, NY--(BUSINESS WIRE)--October 21, 1997--Cityscape Financial Corp. (Nasdaq:CTYS CTYS Chat to You Soon ) 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 The Office of Fair Trading or OFT is a non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator. (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 (company) CityScape - A re-seller of Internet connections to the PIPEX backbone. E-Mail: <sales@cityscape.co.uk>. Address: CityScape Internet Services, 59 Wycliffe Rd., Cambridge, CB1 3JE, England. Telephone: +44 (1223) 566 950. 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 Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , 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 Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , 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 Elmsford is a village in Westchester County, New York, United States. The population was 4,676 at the 2000 census. As a village, it is located in the Town of Greenburgh. The village is named after a large elm tree that once grew in the community. and has regional processing offices in California, Georgia, Illinois and Virginia. CONTACT: Robert C. Patent, EVP EVP Executive Vice President EVP EGR (Exhaust Gas Recirculation) Valve Position Sensor EVP Electronic Voice Phenomenon EVP Europäische Volkspartei (Germany) EVP Employee Value Proposition Tim S. Ledwick, CFO See Chief Financial Officer. Cityscape Financial Corp. (914) 592-6677 Michele Katz/ Geoffrey Buscher/ Jason Langer Press: Stan Froelich/ Elisabeth Philippe Morgen-Walke Associates (212) 850-5600 |
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