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): February 9, 1998
MULTI-COLOR CORPORATION
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(Exact Name of Registrant as Specified in Charter)
Ohio
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(State or Other Jurisdiction of Incorporation)
0-16148 31-1125853
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(Commission File Number) (IRS Employer
Identification Number)
205 West Fourth Street, Suite 1140
Cincinnati, Ohio 45202
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (513) 381-1480
Item 5. Other Events.
In its report on Form 10-Q for the quarter ended December 28, 1997 filed
on January 27, 1998, the Registrant reported in its Management's Discussion and
Analysis of Financial Condition and Results of Operations that at December 28,
1997 it was in violation of a required cash flow coverage ratio contained in its
banking arrangements. The ratio was .77 to 1 versus a requirement of 1 to 1. It
also reported that it was negotiating a waiver of default of that covenant and
that it expected to receive a waiver.
On February 9, 1998, the Registrant received the waiver of that default.
As part of that waiver, the Registrant agreed to a prohibition against payments
of dividends and purchases of its equity securities. The Registrant has not been
paying Common Stock dividends but has been paying dividends of $69,852 per
quarter on its outstanding Series A and Series B Preferred Stock and will be
required to cease those payments by this provision. In addition, its borrowing
base was restricted. That base was the lesser of the sum of 80% of eligible
accounts receivable plus 50% of eligible inventories less a block of $0, or the
total revolving commitment. This block amount was increased to $500,000.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
10.42 Fourth Amendment to Credit Agreement and Waiver Agreement
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 hereto duly authorized.
MULTI-COLOR CORPORATION
Dated: February 13, 1998 By: /s/William R. Cochran
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William R. Cochran
Vice President,
Chief Financial Officer