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UNITED STATES
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): November 2, 1999
POLAND COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
New York 333-20307 06-1070447
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification No.)
One Commercial Plaza
Hartford, Connecticut 06103-3585
(Address, including zip code, of principal executive office)
(860) 549-1674
Registrant's telephone number, including area code
NOT APPLICABLE
(Former name, former address and fiscal year, if changed since last report)
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ITEM 5. OTHER EVENTS.
Poland Communications, Inc. ("PCI" or "Registrant"), a New York
corporation, is a wholly-owned subsidiary of @ Entertainment, Inc., a Delaware
corporation ("@ Entertainment"). As previously reported on PCI's Current Report
on Form 8-K, filed with the Securities and Exchange Commission on September 20,
1999, Bison Acquisition Corp., a wholly-owned subsidiary of United Pan-Europe
Communication N.V., acquired 99% of the outstanding common stock of @
Entertainment, Inc. (the "Acquisition") and filed with the Secretary of State of
the State of Delaware the Certificate of Ownership and Merger of Bison
Acquisition Corp. with and into @ Entertainment, with @ Entertainment continuing
as the surviving corporation (the "Merger").
As a result of the Acquisition and the Merger, the Registrant believes
that a "Change of Control" occurred under the indentures governing the issuance
of its 9 7/8% Senior Notes Due 2003 and 9 7/8% Senior Discount Notes Due 2003
(collectively, the "Senior Notes"). Pursuant to the terms of the indentures
governing the Senior Notes (each an "Indenture" and, collectively, the
"Indentures"), upon the occurrence of a Change of Control, each holder of Senior
Notes has the right, at such holder's option, to require PCI to repurchase all
or a portion of such holder's Senior Notes at the Repurchase Price (as defined
herein) plus accrued and unpaid interest through the Expiration Date (as defined
herein).
On September 5, 1999, the Registrant commenced an offer to repurchase
(the "Offer to Repurchase" or "Offer") the Senior Notes at the repurchase price
of $1,010 per $1,000 of principal amount, which is 101% per $1,000 principal
amount of Senior Notes ("Repurchase Price") on the Expiration Date (as defined
herein), plus accrued and unpaid interest. As of August 1, 1999, the Registrant
had $129,668,000 aggregate principal amount at maturity of Senior Notes
outstanding.
The Offer expired at 12:01 PM, New York City time, on November 2, 1999.
Pursuant to the Offer, PCI has purchased $113,237,000 aggregate principal amount
at maturity of the Senior Notes for an aggregate price of $114,369,370.
PCI is dependent on obtaining new financing to achieve this business
strategy. Future sources of financing for PCI could include public or private
debt offerings or bank financings or any combination thereof, subject to the
restrictions contained in the indentures governing PCI's @ Entertainment's and
United Pan-Europe Communications N.V.'s ("UPC") outstanding senior indebtedness.
Moreover, if PCI's plans or assumptions change, if its assumptions
prove inaccurate, if it consummates unanticipated investments in or acquisitions
of other companies, if it experiences unexpected costs or competitive pressures,
or if existing cash, and projected cash flow from operations prove to be
insufficient, PCI may need to obtain greater amounts of additional financing.
While it is PCI's intention to enter only into new financing or refinancings
that it considers advantageous, there can be no assurance that such sources of
financing would be available to PCI in the future, or, if available, that they
could be obtained on terms acceptable to PCI. PCI is also dependent on its
parent, @ Entertainment, and @ Entertainment's parent, UPC to provide financing
to achieve PCI's business strategy. @ Entertainment has represented that it will
make such financing available to fund PCI's current business strategy for at
least the next twelve months. However, there is no obligation from @
Entertainment or UPC, contractually or otherwise, to make such financing
available to PCI.
@ Entertainment's cash on hand will be insufficient to satisfy all of
its obligations related to its offer to repurchase its and our outstanding
senior notes and to complete its current business plan for its DTH and
programming business based on its past operations. UPC and @ Entertainment are
evaluating
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various alternatives to meet @ Entertainment's and our capital needs, however,
UPC expects to provide @ Entertainment with cash advances to meet @
Entertainment's capital expenditures. Future sources of financing for @
Entertainment could include public or private debt or bank financing or any
combination thereof, subject to the restrictions contained in the indentures
governing @ Entertainment's and UPC'S senior indebtedness. UPC may consider
additional equity financing of @ Entertainment, although there can be no
assurances that UPC or other companies will contribute additional equity.
Attached as an exhibit to this Current Report is a press release by
United Pan-Europe Communications, N.V. relating to the change of control offers
which is incorporated by reference.
ITEM 7. EXHIBITS.
EXHIBIT NO. DOCUMENT
99.1 Press release of United Pan-Europe Communications, N.V.
dated November 3, 1999.
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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.
POLAND COMMUNICATIONS, INC.
Date: November 3, 1999 By: /s/ Ray D. Samuelson
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Ray D. Samuelson
Managing Director of Finance & Accounting
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EXHIBIT INDEX
Exhibit Description
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99.1 Press release of United Pan-Europe Communications, N.V.
dated November 3, 1999.