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
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Date of Report (Date of Earliest Event Reported): December 15, 1996
JPS TEXTILE GROUP, INC.
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(Exact Name of Registrant as Specified in its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
33-27038 57-0868166
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(Commission File Number) (I.R.S. Employer
Identification No.)
555 North Pleasantburg Drive, Suite 202,
Greenville, South Carolina 29607
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(Address of Principal Executive Offices) (Zip Code)
(864) 239-3900
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 5: OTHER EVENTS
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JPS Textile Group, Inc. (the "Company") did not make
scheduled November 15, 1996 interest payments of approximately $1.9
million on its 7% Subordinated Debentures due May 15, 2000 (the "7%
Debentures" and, together with the Subordinated Notes referred to
below, the "Outstanding Securities"). In addition, the Company did
not make scheduled December 1, 1996 interest payments of (i)
approximately $5.4 million on its Senior Subordinated Discount Notes
due June 1, 1999 (the "Discount Notes"), and (ii) approximately $3.6
million on its 10.25% Senior Subordinated Notes due June 1, 1999 (the
"10.25% Notes" and, together with the Discount Notes, the
"Subordinated Notes").
The failure to make the November 15, 1996 interest payments
on the 7% Debentures constituted a default under the indenture
governing the 7% Debentures, which default became an event of default
under said indenture on December 15, 1996. The failure to make the
December 1, 1996 interest payments on each of the Discount Notes and
the 10.25% Notes constitutes a default under each of the respective
indentures governing the Discount Notes and the 10.25% Notes, which
defaults will become events of default on January 1, 1997 pursuant to
the terms of said indentures unless the Company makes such interest
payments on or before such date. The Company does not expect that it
will be able to make such interest payments on or before January 1,
1997 and, accordingly, anticipates that such events of default will
occur on such date.
As a result of the event of default under the indenture
governing the 7% Debentures, the holders of the 7% Debentures are
entitled to accelerate the debt represented thereby, which would
result in principal of approximately $54.1 million becoming
immediately due and payable. Unless the defaults existing under the
respective indentures governing the Subordinated Notes are cured on or
prior to January 1, 1997, the holders of the Subordinated Notes will
be entitled to accelerate the debt represented by such instruments,
which would result in principal of approximately $109.2 million, in
the case of the Discount Notes, and $76.8 million, in the case of the
10.25% Notes, becoming immediately due and payable. The Company does
not have the ability to repay such indebtedness under the Outstanding
Securities if the same were to be accelerated.
The Company has engaged The Blackstone Group L.P. to act as
its financial advisor in connection with a potential financial
restructuring of the Company and to expeditiously reach an
understanding with the holders of the Outstanding Securities.
In addition, at the request of the holders of a substantial majority
in principal amount of the Outstanding Securities, the Company engaged
Houlihan, Lokey, Howard & Zukin, Inc. and Fried, Frank, Harris,
Shriver & Jacobson to represent such holders in connection with such a
financial restructuring, for which representation the Company has
agreed to pay. The Company is engaged in negotiations with such
bondholders and their representatives in order to come to an
understanding with respect to restructuring the terms of its debt
securities. The Company is optimistic that it will be able to
accomplish an overall financial restructuring. However, there can be
no assurances that the negotiations with the holders of the
Outstanding Securities will be successful.
SIGNATURE
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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.
JPS TEXTILE GROUP, INC.
Date: December 20, 1996 By: /s/ David H. Taylor
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David H. Taylor
Executive Vice President-Finance,
Principal Financial Officer and
Secretary
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