Cityscape Financial Corp.'s chief executive said that next week, when the subprime lender discloses quarterly earnings, he would answer rumors it is running out of cash.
Cityscape has said it would have sufficient liquidity to fund its operations through the latter part of the first quarter of 1998. But some investors said they believe Cityscape is unlikely to last that long unless another company steps in.
"The company will be facing a cash crisis by yearend," said one investor. Cityscape is burning cash faster than expected, and according to the investor is scrambling to sell off loan portfolios and its U.K. operations.
Cityscape chief executive Robert Grosser would not confirm or deny this, but said he would comment next week. Earnings were originally scheduled to be reported last week.
Cityscape has reportedly retained Ocwen Financial Corp., a distressed- asset specialist based in West Palm Beach, Fla., to help bring its seriously delinquent loans current.
An Ocwen executive and Mr. Grosser both declined to comment.