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) May 2, 1994
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ROHR, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-6101 95-1607455
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorpoation) File Number) Identification No.)
850 Lagoon Drive, Chula Vista, CA 91910
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (619) 691-4111
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Item 5. Other Events.
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Rohr, Inc., (the "Company") settled all of its contractual disputes with the
U.S. Air Force. In addition, it has reached a settlement of the civil claims
aspects of an investigation by the Los Angeles Office of the U.S. Attorney. A
settlement of the criminal charges received Court approval on May 2, 1994.
Two years ago, the U.S. Air force filed a termination notice for alleged
default under a spare pylon contract for the C-5 aircraft. Upon notification of
this action, Rohr commenced the appeal process to convert the termination to one
for convenience of the government. Contemporaneously, Rohr filed a notice of
breach of contract with the government on the C-5 spare pylon contract. Rohr
also filed a variety of actions before the Armed Services Board of Contract
Appeals requesting payment of sums owed Rohr due to the government's imposition
of redefined acceptance criteria under the C-5 pylon program and the KC-135
re-engining program. Rohr also recorded special provisions in prior periods
representing the projected settlement resolution of these issues.
Rohr and the U.S. Air Force have now settled all of these contractual
disputes. The most significant aspects of this settlement are:
1. The C-5 spare pylon contract will be converted to termination for
government convenience. Rohr will retain approximately $27.3 million of
unliquidated progress payments previously made by the U.S. Air Force.
2. Rohr will retain most of the C-5 spare pylon work-in-process and raw
material inventories.
3. Rohr will provide a warranty on certain, specified C-5 pylon panels. This
will end seven years after the original delivery date of each applicable
panel to the Air Force. The original delivery dates for the panels to be
warranted range from 1989 to 1991. Rohr has established a reserve for
this warranty obligation.
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Contemporaneously with the settlement with the U.S. Air Force, Rohr and the
United States Attorney for the Central District of California settled the civil
claims aspects of an investigation which had been on-going since 1990. This
concerned the production of parts, the recording of information which is a part
of that production process and the testing practices utilized by Rohr on several
programs. Rohr cooperated fully in the investigation and does not believe there
was any adverse effect on the safety or utilization of its products. Under this
settlement, Rohr paid $4 million to the U.S. Attorney's Office for the civil
claims. On May 2, 1994, the U.S. District Court in Los Angeles approved a
settlement of criminal aspects of the investigations and imposed a sentence of
$3.7 million in fines relating to eight counts of making improper entries in the
Company's records. Rohr recorded special provisions in prior periods reflecting
its assessment of the ultimate costs which it believed would be incurred.
In connection with these settlements, a recently unsealed qui tam lawsuit
filed by former emplolyees against Rohr on behalf of the U.S. Government with
respect to certain of the activities that had been under investigation has been
dismissed with prejudice.
SIGNATURE
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.
ROHR, INC.
(Registrant)
May 3, 1994
By:____________________________________
R.W. Madsen
Vice President, General
Counsel and Secretary
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