UNITED STATES
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 (Date of earliest event reported) NOVEMBER 30, 2005
PIZZA INN, INC.
(Exact name of registrant as specified in its charter)
MISSOURI 0-12919 47-0654575
(State or other jurisdiction of incorporation) (Commission File Number) (IRS
Employer Identification No.)
3551 PLANO PARKWAY, THE COLONY, TEXAS 75056
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (469) 384-5000
NOT APPLICABLE
(Former name or former address, if changed since 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-4(c))
ITEM 2.04 TRIGGERING EVENTS THAT ACCELERATE OR INCREASE A DIRECT FINANCIAL
OBLIGATION OR AN OBLIGATION UNDER AND OFF-BALANCE SHEET ARRANGEMENT
On October 19, 2005, Pizza Inn, Inc. ("Company") provided written notice to
Wells Fargo Bank, N.A. ("Wells Fargo") that the Company believed it had failed
to comply with certain financial ratio covenants contained in the Third Amended
and Restated Loan Agreement between the Company and the Bank dated January 22,
2003 (as amended, the "Loan Agreement") as of the close of the Company's fiscal
quarter on September 25, 2005. As a result, the Company believes an Event of
Default (as defined in the Loan Agreement) exists.
Upon the occurrence of an Event of Default Wells Fargo may elect, among
other remedies, to terminate the Revolving Credit Commitment under the Loan
Agreement, or to declare all outstanding principal of and accrued and unpaid
interest on the Company's obligations under the Loan Agreement immediately due
and payable. On November 28, 2005 Wells Fargo notified the Company that as a
result of the Event of Default Wells Fargo would continue to make Revolving
Credit Loans (as defined in the Loan Agreement) to the Company in accordance
with the terms of the Loan Agreement, provided that the aggregate principal
amount of all such Revolving Credit Loans does not exceed $3,000,000 at any one
time.
Additionally, Wells Fargo notified the Company that the LIBOR rate margin
and the Prime Rate Margin have been adjusted, effective as of October 1, 2005,
according to the pricing rate grid set forth in the Loan Agreement.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(C) EXHIBITS.
EXHIBIT NO. DESCRIPTION OF EXHIBIT
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99.1 November 22, 2005 letter from Wells Fargo Bank (furnished herewith and
incorporated herein by reference)
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.
Pizza Inn, Inc.
Date: November 30, 2005 By: /s/ Shawn M. Preator
Shawn M. Preator, Chief Financial Officer