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):
March 9, 2000
AutoBond Acceptance Corporation
Texas 600-21673 75-2487218
(State or other jurisdiction of (Commission File Number) (IRS Employer Identification
incorporation) Number)
100 Congress Avenue, 78701
Austin, Texas (Zip Code)
(Address of principal
executive offices)
Registrant's telephone number, including area code:
(512) 435-7000
Item 5. Other Events.
AutoBond Acceptance Corporation is advising investors and
other interested parties as to the status of its dispute with Dynex Capital,
Inc. ("Dynex").
On February 8, 1999, AutoBond Acceptance Corporation
("AutoBond Acceptance"), AutoBond Master Funding Corporation V, a wholly-owned
subsidiary of AutoBond Acceptance ("Master Funding", and collectively with
AutoBond Acceptance, "AutoBond"), William O. Winsauer, the Chairman and Chief
Executive Officer of AutoBond Acceptance, John S. Winsauer, the Director
of Marketing and Secretary of AutoBond Acceptance, and Adrian Katz, the
former Vice-Chairman, Chief Operating Officer and Chief Financial Officer of
AutoBond Acceptance (collectively, the "Plaintiffs") commenced an action in
the District Court of Travis County, Texas (250th Judicial District) against
Dynex and James Dolph (collectively, the "Defendants"). The Plaintiffs
asserted that Dynex' refusal to fund AutoBond breached the terms of the
Credit Agreement, dated June 9, 1998 (the "Credit Agreement"), by and among
AutoBond Acceptance, Master Funding and Dynex. The Plaintiffs also claimed
that Dynex defamed Plaintiffs subsequent to such refusal. Plaintiffs also
alleged that Dynex and Mr. Dolph conspired to misrepresent and mischaracterize
AutoBond's credit underwriting criteria and its compliance with such criteria
with the intention of interfering with and causing actual damage to AutoBond's
business, prospective business and contracts.
On March 9, 2000, following a four-week jury trial, the jury
returned a verdict in favor of the Plaintiffs. Specifically, the jury found
that (a) AutoBond made no material, knowing or reckless misrepresentations to
induce Dynex to enter into the June 9, 1998 agreements between the parties,
(b) AutoBond did not breach its June 9, 1998 agreements with Dynex
prior to Dynex' cessation of funding and (c) Dynex maliciously or negligently
made defamatory statements about AutoBond. Based on these findings, the jury
awarded AutoBond approximately $18.7 million in direct lost profits and
approximately $50 million in consequential lost profits.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
None.
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: March 10, 2000
AutoBond Acceptance Corporation
By: /s/ William O. Winsauer
-----------------------------
William O. Winsauer
Chairman and Chief Executive Officer
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