FirstCity Liquidating Trust Announces First Quarter 1999 Results
HOUSTON, April 22 /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 decreased from $55.3 million at December 31, 1998 to $47.5 million at March 31, 1999.
The quarter-to-quarter decrease resulted primarily from a January 25, 1999 distribution of $8.6 million.
As previously announced, a cash distribution of $9.8 million, or $4.00 per share, to Class B Certificate holders is payable on April 26, 1999 and will bring the valuation to $37.7 million.
The March 31, 1999 balance sheet of the Trust reflects a value of $27.5 million for a two-thirds interest in a partnership which owns the First City Tower. First City Tower is a Class A office building located in downtown Houston. The $27.5 million valuation reflects significant discounts against the asset because of litigation (appeal of summary judgment issued in favor of the Trust) on the building, and for the fact that it is only a two-thirds interest. Using the current valuation of the Trust, the interest in the First City Tower would have to be sold for an amount in excess of approximately $50 million for the Class C Certificates to realize any value. With the recent run-up in values for Houston downtown office buildings and on the assumption that the litigation on the building is resolved in the Trust's favor and further assuming that the price is not drastically discounted because the Trust's interest is only two-thirds, it is possible that the Class C Certificates could have value at some point in the future. Investors are advised, however, that Class C Certificates are highly speculative securities. |
