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): July 13, 2000
OTR Express, Inc.
(Exact name of registrant as specified in charter)
Kansas 1-19773 48-0993128
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification Number)
804 N. Meadowbrook Drive, Olathe, KS 66062
(Address of Principal Executive Offices) (Zip Code)
(913) 829-1616
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Item 5. Other Events.
OTR Express, Inc. (the "Company") is in discussions with its four largest
equipment lenders to renegotiate payment terms on its long-term debt to such
lenders of approximately $37 million in aggregate. Based upon current
information and internal forecasts, management of the Company is concerned
about having sufficient availability on the Company's existing $10 million
line of credit for future operations in the near term. Pursuant to recent
discussions with its line of credit lender, the Company agreed in principle to
an increased collateral reserve of $1 million, thereby decreasing availability
under the line, and the Company is seeking waiver or amendment of certain loan
covenants with respect to which the Company is or expects to be in default.
For the next few months and pending the negotiation, if any, of a formal
amendment or agreement with such equipment lenders, management of
the Company intends to make interest-only payments on such loans, and the
Company may be considered in default on such loans to the extent that
scheduled principal payments are not timely made. There can be no assurance
that any formal, acceptable agreement or amendment with any or all of such
lenders will be obtained or whether such lenders will seek to modify existing
credit terms or enforce the remedies available to them in this situation.
These equipment loans are collateralized by the tractors and trailers
purchased with the loan funds.
Various statements made in this Current Report on Form 8-K which are not
historical facts may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such statements are based upon current
information, expectations, estimates and projections and are subject to risks
and uncertainties. Actual results could differ materially from current
expectations due to a number of factors, including general economic and market
conditions, regulatory issues, fuel price volatility, pricing pressures,
interest rate fluctuations, the availability and compensation of qualified
drivers and owner-operators, tractor and trailer values, the ability of the
Company to realize the benefits of its business plan and other factors.
Readers should review and consider the various disclosures made by the Company
in this Form 8-K, in its reports to stockholders, and in its periodic reports
on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission.
The Company undertakes no obligation to update publicly or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise.
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.
OTR EXPRESS, INC.
Date: July 13, 2000 By: /s/ William P. Ward
William P. Ward
President and Chief
Executive Officer