SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
DATE OF REPORT NOVEMBER 15, 1996
(Date of earliest event reported)
AMERICAN PLASTICS & CHEMICALS INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
06348 95-2461288
(Commission File No.) (I.R.S. Identification No.)
400 N. ST. PAUL STREET, SUITE 890, DALLAS, TX 75201
(Address of principal executive offices, including zip code)
Registrant's telephone number (214) 871-9650
(A Development Stage Company)
ITEM 1. CHANGES IN CONTROL OF REGISTRANT
Not Applicable
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
Not Applicable
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
Not Applicable
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
Not Applicable
ITEM 5. OTHER EVENTS
The Registrant has engaged an internationally recognized investment
banking firm to serve as its exclusive financial advisor and agent
with respect to arranging financing for a methylene di-para-
phenylene isocyanate ("MDI") plant to be constructed in the People's
Republic of China ("China").
The MDI plant is to be designed, built, and operated by a joint
venture of which a 60% controlling interest is owned by the
Registrant. A feasibility study of the project conducted by an
independent engineering firm was completed in November 1995. It
confirmed the project's viability, including capital costs. An
environ-mental impact report was completed by a second independent
engineering firm in December 1995. These reports and the joint
venture contracts between the Registrant and its Chinese partner
were submitted to the appropriate Chinese State authorities in late
March 1996 for their preliminary approval of the project, with final
approval subject to completion of funding arrangements. However,
the MDI project has been formally approved as part of China's Ninth
Five Year Plan which began on January 1, 1996.
The investment in the project is estimated to be $160 million.
China law requires that registered capital (equity) be one-third of
the total investment, or approximately $53 million. The project
debt would be approximately $107 million. The debt requirement is
to be raised via project financing, with the borrower to be the
joint venture. However, the Registrant and its partner are each
individually responsible for their respective equity contributions
to the joint venture. Therefore, the Registrant is required to
raise sixty percent (60%) of the total $53 million equity
requirement, or approximately $35 million, inclusive of fees and
contingencies.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS
Not Applicable
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Not Applicable
ITEM 8. CHANGE IN FISCAL YEAR
Not Applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
American Plastics & Chemicals Inc.
(registrant)
By: /s/ M. Edward Stewart
_______________________________________
M. Edward Stewart
President & Chief
Executive Officer
Date: November 15, 1996