FirstCity Liquidating Trust Announces Fourth Quarter 1999 Results
HOUSTON, Jan. 19 /PRNewswire/ -- FirstCity Liquidating Trust (OTC Bulletin Board: FCFCL and FCFCZ) announced today the net asset value of the Trust as reflected in the value of the Class B Certificates increased from $33.9 million at September 30, 1999 to $52.4 million at December 31, 1999.
Subsequent to year-end, the Liquidating Trust made a $2.5 million distribution to Class B Certificate holders, reducing the valuation to $49.9 million.
The quarter to quarter increase in the value of Trust assets was primarily the result of a write-up in valuation of a 67% partnership interest (from $27.5 million as of September 30, 1999 to $45 million as of December 31, 1999). The partnership owns the First City Tower, which is a Class A office building in downtown Houston. The increased valuation reflects the settlement of litigation on the building and a perceived increase in the value of downtown Houston real estate. The settlement of the litigation clears the way for the partnership interest to be marketed and such efforts will begin in the first quarter of 2000. The ultimate value of the partnership interest is unknown at this time.
Using the current valuation of the Trust assets, the partnership interest in the Tower would have to be sold for an amount in excess of approximately $50 million for the Class B Certificates to be paid in full, and for the excess, or "pour over" to attribute to the Class C Certificates. While it is possible for the Class C Certificates to have some value in the future, the amount, if any, is not known at this time. There are currently 738,000 Class C Certificates outstanding at this time. |
