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Non-Tech : Cityscape Financial (CTYS) -- Ignore unavailable to you. Want to Upgrade?

To: Ploni who wrote (1667)	11/16/1997 1:04:00 PM
From: Bruce A. Thompson	Respond to of 2544

Charles, Thank you for the overview of RAY. Our corproate attorneys have a Bankruptcy division. (nice isn't it?) They tell me that the Bankruptcy Court is debtor's court not a creditor's court. They tend to lean heavily toward the debtor's side. They also say that the debtors can vote all they want to, but the judge has the final say. I agree that this is not a place to be investing right now, but I think I'll flag this one in my alert file. Bruce

To: Ploni who wrote (1667)	11/16/1997 2:31:00 PM
From: Rational	Read Replies (1) \| Respond to of 2544

Charles: The rule of 78's permits charging any rate in the nonstatus (subprime) lending market. But, the OFT has the authority to issue license to lenders based on what OFT considers as fair. This is the problem: OFT determined that CTYS made unfair (through legal) lending and wants CTYS to return the money (at least partly) it made in the past. CTYS was expecting to compensate the high delinquency by charging high rates -- this equation is broken now and they have no chance to make much profit in UK. They also have to correct for the past problems. The previous CEO was simply lying, IMHO. The franchise value is the net-work of brokers and borrower bases. CTYS has a bad reputation among its stockholders and bondholders, but is perceived to be a good lender in the US. It is possible that these borrowers and brokers have propped up CTYS prices as the informed investors sold off. Until CTYS solves all its creditors' obligations, it is too risky for equityholders, IMHO. Due to pressure from creditors, they have decided to sell their best assets, the home equity residuals. This does not depict a clean future at this stage, IMHO. CTYS may likely revive as a fresh subprime lender, IMO. Sankar