SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 3,2006
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International Thoroughbred Breeders, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-9624 22-2332039
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
Suite 1300, 1105 N. Market St., PO Box 8985, Wilmington, Delaware, 19899-8985
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(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (302) 427-7599
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NOT APPLICABLE
(Former name or former address, if changed from last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-14(C))
INTERNATIONAL THOROUGHBRED BREEDERS, INC.
AND SUBSIDIARIES
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial
Obligation or an Obligation Under an Off-Balance Sheet Arrangement.
On October 3, 2006, International Thoroughbred Breeders, Inc. together with
certain of its subsidiaries (the "Company") and certain companies owned or
controlled by Francis W. Murray, our CEO, all being the same companies which
entered into the Loan and Security Agreement with PDS Gaming Corporation ("PDS")
received notice from PDS that it has accelerated the maturity of our obligations
and declared all amounts remaining unpaid under the Loan Agreement and the Note
dated June 30, 2005, and all amounts payable under our equipment leases with PDS
immediately due and payable. As of October 1, 2006, the borrowers owe
approximately $35.6 million under the loan agreement and note and approximately
$4.5 million under the equipment leases.
The Company has been in default in payment of the principal and interest
under the note, and in default in payment of the equipment rentals under the PDS
leases, in each case since January 2006. As reported in our Form 8-K filed on
July 20, 2007, we had entered into the First Amended and Restated Forbearance
Agreement with PDS on July 14, 2006, effective as of June 1, 2006. The
forbearance period under such forbearance agreement expired on August 29, 2006.
As a result of the acceleration, the rate of interest payable under the note
will increase by 5% per annum above the rate in effect prior to our default.
The Company does not currently have the means to satisfy the creditor's
demands and is currently negotiating with PDS for an amicable solution. The
Company is continuing to analyze and pursue strategic alternatives, including
sales of assets. If we are unsuccessful in resolving this matter, we believe the
lender will take action in an attempt to foreclose against our assets.
INTERNATIONAL THOROUGHBRED BREEDERS, INC.
AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of 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 thereunto duly authorized.
INTERNATIONAL THOROUGHBRED
BREEDERS, INC.
By:/s/ Francis W. Murray
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Francis W. Murray
President, Chief Executive Officer and
Treasurer
Date: October 6,2006
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