Cityscape to File for Chapter 11

Cityscape Financial Corp., Elmsford, N.Y., has announced that it intends to file a Chapter 11 bankruptcy petition within 60 days.In response, Standard & Poor's lowered its senior note rating on Cityscape from CCC to D (default) and removed the rating from CreditWatch. S&P said Cityscape has deferred the June 1 interest payment on its senior notes and continued to defer the May 1 payment on its convertible debentures. "The continued deferral of the convertible interest payment constitutes an event of default pursuant to the indenture under which such securities were issued," S&P said. Cityscape said it has entered into a nonbinding letter of intent with representatives of holders of a majority of the company's 12 3/4% senior notes due 2004 to support a proposed restructuring. The letter of intent has been filed with the Securities and Exchange Commission.