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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): August 29, 2001
ENSTAR INCOME PROGRAM II-1 L.P.
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(Exact Name Of Registrant As Specified In Its Charter)
Georgia
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(State or other jurisdiction of incorporation)
0-14508 58-1628877
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(Commission File Number) (I.R.S. Employer Identification No.)
c/o Enstar Communications Corporation
12405 Powerscourt Drive, St. Louis, Missouri 63131
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 965-0555
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Item 2. Acquisition or Disposition of Assets.
The Partnership, together with certain affiliates (collectively, the
"Selling Partnerships"), entered into an asset purchase agreement (the "Illinois
Agreement"), dated August 29, 2001, with certain indirect subsidiaries of
Charter Communications, Inc. ("Charter"), a related party, to sell certain
assets and liabilities of the Illinois cable systems of the Selling
Partnerships. The Illinois Agreement was entered into as the result of an
auction process with sealed bids, in which the bid from Charter for an aggregate
purchase price of $63.0 million exceeded those of all other bidders. The net
assets to be sold under the Illinois Agreement include the Partnership's cable
systems in and around Litchfield and Taylorville, Illinois for a total purchase
price of $14.7 million. Proceeds from the sale will be used primarily for
transaction costs, dissolution expenses and distributions to partners. Each sale
transaction outlined in the Illinois Agreement is contingent upon the closing of
each of the other Selling Partnerships' sales transactions. The sale is subject
to approval by a majority of the holders of the Partnership's outstanding units,
approval by the other Selling Partnerships of their respective sales
transactions and certain closing conditions, including regulatory approvals.
There can be no assurance that this proposed sale will be consummated.
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Item 7. Financial Statements and Exhibits
(a) Financial statements of businesses acquired.
Not applicable
(b) Pro forma financial information.
The following Unaudited Pro Forma Condensed Financial Statements are based
on the historical financial information of Enstar Income Program II-1, L.P. The
Unaudited Pro Forma Condensed Balance Sheet as of June 30, 2001 assumes the
disposition of certain assets and liabilities of the Partnership's cable systems
in and around Litchfield and Taylorville, Illinois as if it had occurred on June
30, 2001. The Unaudited Pro Forma Condensed Statements of Operations for the six
months ended June 30, 2001 and year ended December 31, 2000 assume the above
disposition occurred on January 1, 2000.
The Unaudited Pro Forma Condensed Financial Statements of Enstar Income
Program II-1, L.P. do not purport to be indicative of what our financial
position or results of operations would actually have been had the transactions
described above been completed on the dates indicated or to project our results
of operations for any future date.
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ENSTAR INCOME PROGRAM II-1, L.P.
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
AS OF JUNE 30, 2001
HISTORICAL PRO FORMA PRO FORMA
JUNE 30, 2001 DISPOSITIONS ADJUSTMENTS JUNE 30, 2001
------------- ------------ ------------ --------------
ASSETS
ASSETS:
Cash $ 1,319,700 $ -- $ 14,706,800 (a) $ 16,026,500
Accounts receivable 66,200 (66,200) -- --
Prepaid expenses and other assets 38,300 (38,300) -- --
Property, plant and equipment, net 5,805,400 (5,805,400) -- --
Franchise cost, net 49,800 (49,800) -- --
Due from affiliates 284,900 (284,900) -- --
------------ ------------ ------------ --------------
$ 7,564,300 $ (6,244,600) $ 14,706,800 $ 16,026,500
============ ============ ============ ==============
LIABILITIES AND PARTNERSHIP CAPITAL
LIABILITIES:
Accounts payable $ 50,600 $ (50,600) $ 588,000 (a) $ 588,000
Accrued liabilities 206,500 (206,500) -- --
------------ ------------ ------------ --------------
257,100 (257,100) 588,000 588,000
------------ ------------ ------------ --------------
PARTNERSHIP CAPITAL 7,307,200 (5,987,500) 14,118,800 (a) 15,438,500
------------ ------------ ------------ --------------
$ 7,564,300 $ (6,244,600) $ 14,706,800 $ 16,026,500
============ ============ ============ ==============
(a) Represents proceeds from sale of $14,706,800 which will be used for
transaction costs of $588,000, dissolution expenses and distributions to
partners. An estimate of Partnership dissolution expenses has not yet been
determined. Amounts to be distributed to general and limited partners will
be based upon the Agreement of Limited Partnership.
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ENSTAR INCOME PROGRAM II-1, L.P.
UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001
HISTORICAL PRO FORMA
JUNE 30, 2001 DISPOSITION (a) JUNE 30, 2001
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REVENUES $ 1,596,600 $ (1,596,600) $ --
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OPERATING EXPENSES:
Service costs 443,400 (443,400) --
General and administrative expenses 149,900 (149,900) --
General partner management fees and reimbursed expenses 247,100 (247,100) --
Depreciation and amortization 379,500 (379,500) --
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1,219,900 (1,219,900) --
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OPERATING INCOME 376,700 (376,700) --
OTHER INCOME (EXPENSE):
Interest income 26,100 (26,100) --
Other (31,000) 31,000 --
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(4,900) 4,900 --
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NET INCOME $ 371,800 $ (371,800) $ --
============= ================ =============
Net income allocated to General Partners $ 3,700 $ (3,700) $ --
============= ================ =============
Net income allocated to Limited Partners $ 368,100 $ (368,100) $ --
============= ================ =============
(a) Represents the results of operations of the Litchfield and Taylorville,
Illinois cable systems to be sold.
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ENSTAR INCOME PROGRAM II-1, L.P.
UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2000
HISTORICAL PRO FORMA
DECEMBER 31, DECEMBER 31,
2000 DISPOSITION (a) 2000
----------- ---------------- ------------
REVENUES $ 3,247,600 $ (3,247,600) $ --
----------- ---------------- ------------
OPERATING EXPENSES:
Service costs 930,100 (930,100) --
General and administrative expenses 361,700 (361,700) --
General partner management fees and reimbursed expenses 516,000 (516,000) --
Depreciation and amortization 612,600 (612,600) --
----------- ---------------- ------------
2,420,400 (2,420,400) --
----------- ---------------- ------------
OPERATING INCOME 827,200 (827,200) --
OTHER INCOME (EXPENSE):
Interest income 129,400 (129,400) --
Other (39,200) 39,200 --
----------- ---------------- ------------
90,200 (90,200) --
----------- ---------------- ------------
NET INCOME $ 917,400 $ (917,400) $ --
=========== ================ ============
Net income allocated to General Partners $ 9,200 $ (9,200) $ --
=========== ================ ============
Net income allocated to Limited Partners $ 908,200 $ (908,200) $ --
=========== ================ ============
(a) Represents the results of operations of the Litchfield and Taylorville,
Illinois cable systems to be sold. A non-recurring gain on sale of
$9,855,000, net of transaction costs of approximately $588,000, resulted
from the disposition which has not been presented in the unaudited pro
forma condensed statement of operations.
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(c) Exhibits
2.1 Asset Purchase Agreement, dated August 29, 2001, by and between Charter
Communications Entertainment I, LLC, Interlink Communications Partners, LLC, and
Rifkin Acquisitions Partners, LLC and Enstar Income Program II-1, L.P., Enstar
Income Program II-2, L.P., Enstar Income Program IV-3, L.P., Enstar
Income/Growth Program Six-A, L.P., Enstar IV/PBD Systems Venture, and Enstar
Cable of Macoupin County
2.2 Letter of Amendment, dated September 10, 2001, by and between Charter
Communications Entertainment I, LLC, Interlink Communications Partners, LLC,
and Rifkin Acquisitions Partners, LLC and Enstar Income Program II-1, L.P.,
Enstar Income Program II-2, L.P., Enstar Income Program IV-3, L.P., Enstar
Income/Growth Program Six-A, L.P., Enstar IV/PBD Systems Venture, and Enstar
Cable of Macoupin County
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SIGNATURE
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.
Enstar Income Program II-1, L.P.
By: Enstar Communications Corporation,
its General Partner
By: /s/ PAUL E. MARTIN
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Paul E. Martin,
Vice President and Corporate Controller
(Principal Financial Officer and Principal
Accounting Officer)
Dated: September 13, 2001