SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): September 15, 1998
JPE, INC.
(Exact name of registrant as specified in its charter)
MICHIGAN
(State or Other Jurisdiction of Incorporation)
0-22580 38-2958730
(Commission File No.) (IRS Employer Identification No.)
775 Technology Drive, Suite 200
Ann Arbor, Michigan 48108
(Address of Principal Executive Offices) (Zip Code)
(734) 662-2323
(Registrant's Telephone Number, Including Area Code)
ITEM 5 OTHER MATTERS
On September 15, 1998, two of JPE, Inc.'s subsidiaries, Plastic Trim, Inc.
and Starboard Industries, Inc., filed voluntary petitions for relief under
Chapter 11 of the Federal Bankruptcy Code in the United States Bankruptcy Court
for the Eastern District of Michigan.
Under Chapter 11, the companies will continue to operate their respective
businesses in the ordinary course under the protection of the Bankruptcy Court
while seeking to work out a plan of reorganization to provide for the payment of
their respective creditors. GMAC Business Credit has agreed to provide
debtor-in-possession financing to each of Plastic Trim and Starboard Industries
pursuant to the terms of a consensual post-petition financing order submitted to
the Bankruptcy Court by the debtors, GMAC Business Credit and JPE's bank group.
The major customer of both Plastic Trim and Starboard is General Motors
Corporation. Upon the end of the U.A.W. strike against General Motors, JPE's
bank group was unwilling to provide necessary working capital to resume normal
production levels. The decision to file for protection under Chapter 11 for
Plastic Trim and Starboard Industries will permit those companies to fund
ongoing operations and ensures continued production on behalf of their
customers; and will allow JPE the financial flexibility it requires to continue
funding for JPE's other businesses. The formulation of a plan of reorganization
may include the restructuring of liabilities or the sale of all or substantially
all of these companies' assets.
The filing of these two companies does not affect JPE's other operating
subsidiaries, Allparts, Inc., Dayton Parts, Inc. and Industrial & Automotive
Fasteners, Inc. These three subsidiaries remain profitable and it is anticipated
that their operations will continue to be funded through the Company's secured
lending facility.
JPE also announced that John Psarouthakis, the founder of JPE, resigned his
positions as Chairman and Chief Executive Officer and as a director of JPE, Inc.
Ms. Bacon was elected to the additional position of Chief Executive Officer.
James J. Fahrner was elected to the additional position of Chief Operating
Officer.
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.
JPE, INC.
Date: September 29, 1998 /s/ James J. Fahrner
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James J. Fahrner
Chief Operating Officer and
Chief Financial Officer