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

To: Ploni who wrote (2483)	6/3/1998 2:58:00 PM
From: Brooks Jackson	Respond to of 2544

Well, out of curiosity, I called. My impression is that the chances of any recovery are quite small. Michael Swick says nothing has happened in this litigation since October, when they filed papers to have the class certified. A magistrate was supposed to rule on that in 30 days, but has not done so. If and when the class is certified, the company might take as long as 18 months to file a motion to dismiss. At that point the laywers for the stockholders could begin discovery -- taking pre-trial testimony. My guess is that this would settle long before any trial, however. Delays aside, it is not at all certain there is any money to collect. "We are hoping our claim survives the bankruptcy," Swick says. The company has $25 million in Directors and Officers insurance, but that might belong to the bondholders, not us, depending on how the bankruptcy court rules. This is all from a quick telephone conversation, and I apologize to Mr. Swick if I have boogered up anything he said. But generally speaking, my clear impression is that it's going to be a long wait and there might be nothing at the end.