1
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 24, 1999
(November 24, 1999)
DeVlieg-Bullard, Inc.
- -------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-18198 62-1270573
- -------------------------------------------------- --------------- --------------------
(State or Other Jurisdiction of Incorporation) (Commission (I.R.S. Employer
File Number) Identification No.)
1900 Case Parkway South, Twinsburg, Ohio 44807
- -------------------------------------------------- --------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (330) 963-0699
Not Applicable
- -------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
2
ITEM 5. OTHER EVENTS.
On November 18, 1999, DeVlieg-Bullard, Inc. (the "Company") received a
letter (attached as Exhibit 99.1 to this Report) from The CIT
Group/Business Credit, Inc. notifying the Company that it had
defaulted in certain of its obligations under the Post-Petition Loan
and Security Agreement (the "Credit Agreement"), dated as of July 15,
1999, among the Company, The CIT Group/Business Credit, Inc., GMAC
Commercial Credit LLC f/k/a BNY Factoring LLC and each other lender
named therein. As a result, the lenders have notified the Company that
all term loan obligations under the Credit Agreement will bear
interest at a default rate equal to the prime rate announced by Chase
Manhattan Bank plus 6% and all revolving loan obligations will bear
interest at a default rate equal to the prime rate announced by Chase
Manhattan Bank plus 5%. The lenders have notified the Company,
however, that they are not terminating the Credit Agreement,
accelerating obligations thereunder or exercising other rights and
remedies at the current time.
Effective as of November 1, 1999, Alan J. Konieczka was named as the
Company's Vice President and Chief Operating Officer and W. James Lally
was named as Vice President and Chief Financial Officer. Prior to
joining the Company, Mr. Konieczka served as President of Klemp Corp.
and Mr. Lally served as Corporate Controller of Klemp Corp. In
addition, on November 22, 1999, Richard Sappenfield resigned as
President of the Company. John Haggerty will continue to act as the
Company's Chief Executive Officer.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
99.1 Letter dated November 18, 1999 from The CIT Group/Business
Credit, Inc. to DeVlieg-Bullard, Inc.
2
3
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.
DEVLIEG-BULLARD, INC.
Date: November 24, 1999 By: /s/ John Haggerty
----------------------------
John Haggerty
Chief Executive Officer
4
EXHIBIT INDEX
NO. EXHIBIT
- ----- -----------------------------------------------------------
99.1 Letter dated November 18, 1999 from The CIT Group/Business
Credit, Inc. to DeVlieg-Bullard, Inc.