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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: June 7, 2002
iINTELEFILM CORPORATION
(Exact name of registrant as specified in its charter)
MINNESOTA 0-21534 41-1663712
(State or other jurisdiction (Commission File No.) (IRS Employer ID No.)
of incorporation)
6385 Old Shady Oak Road, Suite 290, Eden Prairie, Minnesota 55344
(Address of principal executive offices)
(952) 925-8840
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
(a) Reference is made to the Press Release issued to the
public by the Registrant on June 7, 2002, and attached as an exhibit.
In the Press Release, the Registrant announced that
its majority-owned subsidiary, Video3, has entered into a letter of
intent for the sale of substantially all of its assets to an entity to
be formed by members of the current Video3 management team, consisting
of Jim McKelvey and Joe Stark. The sale will not result in any
immediate proceeds to the Registrant. If the Video3 business is
successful, the Registrant could realize up to $500,000 over four
years. Also, as a result of the sale and in light of the Registrant's
limited financial resources, a substantial workforce reduction has been
effected. The Registrant is focusing its efforts on a final resolution
of the Registrant's long-running litigation against ABC Radio Networks,
Inc. and The Walt Disney Company that resulted in a jury award of $9.5
million last month. The timing of a final resolution of the litigation
is uncertain because post-trial motions have not been decided and
appeals are likely in any event. The Registrant is evaluating methods
of addressing its existing liabilities in light of its limited cash
position, possible post-trial appeals and delays on receiving the jury
award and uncertainty as to sources of financing. The Registrant will
require additional funding to satisfy existing obligations and bring
the litigation to conclusion. Unless the Registrant realizes more than
the jury award through the addition of pre and/or post judgment
interest, or an appeal, the remaining amount from the Disney/ABC
recovery after payment of creditors available for distribution to
stockholders will be nominal.
(b) Reference is made to the cautionary statement of the
Registrant, presented in the Registrant's Form 10-K for the year ended
December 31, 2001.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits
99.1 Press Release dated June 7, 2002
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.
Dated: June 10, 2002 iNTELEFILM Corporation
/s/ Mark A Cohn
Mark A. Cohn
ITS: Chief Executive Officer
EXHIBIT INDEX
99.1 Press Release dated June 7, 2002