Item 8.01 Other Events

In a press release dated June 8, 2009, FirstCity Financial Corporation ("FirstCity") announced that it received notice on June 4, 2009 of the issuance of an opinion by the Court of Appeals for the First District of Texas in FCLT Loans Asset Corp. and Timothy J. Blair, class representative v. FirstCity Financial Corporation in which the Court of Appeals denied the joint motion of the parties to the suit to abate the appeal, reversed the judgment in favor of FirstCity and remanded the case to the trial court. The Court held that JPMorgan, as successor trustee, is the legal owner of the demutualized proceeds interpled by Prudential Insurance Company, and that the trustee's participation is necessary to determine the appropriate disbursement of the demutualization proceeds. The press release dated June 8, 2009 is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.