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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
F O R M 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report
April 26, 1999
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Solo Serve Corporation
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
0-19994 74-2048057
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(Commission File Number) (I.R.S. Employer Identification Number)
1610 Cornerway Blvd.
San Antonio, Texas 78219
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(210) 662-6262
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ITEM 5. OTHER EVENTS
As reported in the Form 8-K for January 20, 1999, Solo Serve
Corporation (the "Company") filed a voluntary petition on January 20, 1999 under
Chapter 11 of the Bankruptcy Code, Case No. 99-50272-C (the "Filing"), in the
United States Bankruptcy Court, Western District of Texas, San Antonio Division,
Bankruptcy Judge Ronald B. King presiding (the "Bankruptcy Court"). Since the
Filing, Solo Serve Corporation, has acted as Debtor in Possession and continued
to operate and manage its affairs.
On April 26, 1999, the Company reported that it had completed
liquidation of all of its inventory and that it had sold certain of its leases.
Those leases not sold or assigned have been rejected in accordance with
applicable provisions of the United States Bankruptcy Code. The Company's only
assets remaining unsold consist of office equipment, furniture and computers;
warehouse equipment and fixtures; store fixtures; and other miscellaneous
assets. These remaining items will be sold at auction at the Company's
headquarters on Wednesday and Thursday, April 29 and 30th, 1999, beginning at
10:00 a.m. each day. The Company's headquarters are located at 1610 Cornerway
Boulevard, San Antonio. The Company's headquarters will be open Tuesday, April
27, 1999 beginning at 10:00 a.m. to permit interested bidders to preview the
items to be sold. For more information regarding the auction, interested parties
may contact Pat of Investment Recovery Group at (210) 662-6262, ext. 200.
The Company also announced that the Bankruptcy Court entered an order
on April 26, 1999 granting the Company's Motion to Terminate Registration of
Securities, and the Company expects to promptly file a Form 15 with the
Securities and Exchange Commission, the effect of which will be to relieve the
Company of the ongoing expense, including legal, audit and other miscellaneous
costs, associated with the obligation to make periodic filings under the
Securities and Exchange Act of 1934. Deregistration of the Company's common
stock will be effective 90 days after filing of the Form 15; however, the
Company is relieved of the obligation to file periodic reports effective upon
the filing of the Form 15. It is expected that the Company's common stock will
no longer be available for trading on the NASDAQ Bulletin Board as a result of
filing of the Form 15.
The Company is presently engaged in resolving disputed claims in the
Bankruptcy Court, a process which is expected to take at least sixty to ninety
days. After resolution of disputed claims and after payment of administrative
claims and other priority claims, the Company intends to distribute any
remaining funds to unsecured creditors. No assurance can presently be given as
to the timing or amount of distributions, if any, to unsecured creditors. The
interests of holders of the Company's common and preferred stock will be
afforded no value in connection with the liquidation of the Company's assets.
In addition, on April 26, 1999, the Company filed, in the Bankruptcy
Court, a Monthly Operating Report Summary for March, 1999, a copy of which has
been filed as Exhibit 99.1 to this Report.
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Forward-looking Statements
Forward-looking statements in this Report are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. There
are certain important factors that could cause results to differ materially from
those anticipated by some of the statements made above. Investors are cautioned
that all forward-looking statements involve risks and uncertainty. Among the
principal uncertainties facing the Company at this time are uncertainty
regarding the amounts likely to be realized from sale of the Company's remaining
assets and the costs associated with the bankruptcy process. The Company does
not undertake to publicly update or revise its forward-looking statements even
if experience or future changes make it clear that any projected results
expressed or implied therein will not be realized.
Copies of the bankruptcy petition and other pleadings may be obtained
by contacting the Office of the Clerk of the United States Bankruptcy Court for
the Western District of Texas, San Antonio Division, 615 E.
Houston Street, San Antonio, Texas 78205, (210) 472-6720.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
The Monthly Operating Report Summary for the Month of March, 1999, is
filed as Exhibit 99.1 to this Report.
(c) Exhibits. The following exhibits are filed as part of this report:
Number Document
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99.1 Monthly Operating Report Summary for the Month of
March, 1999, as filed with the Bankruptcy Court on
April 26, 1999.
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SOLO SERVE CORPORATION
By: /s/ Ross E. Bacon
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Ross E. Bacon,
Secretary and Chief Financial Officer
Dated: April 26, 1999
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EXHIBIT INDEX
Exhibit
Number Description
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99.1 Monthly Operating Report Summary for the Month of
March, 1999, as filed with the Bankruptcy Court on
April 26, 1999.