U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Act of 1934
May 7, 2003
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Date of Report (date of earliest event reported)
Capco Energy, Inc.
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Exact Name of Registrant as Specified in its Charter
Colorado 0-10157 84-0846529
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State or Other Jurisdiction Commission File IRS Employer
of Incorporation Number Identification Number
1401 Blake Street, Suite 100
Denver, Colorado 80202
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Address of Principal Executive Office, Including Zip Code
(303) 572-1135
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Registrant's Telephone Number, Including Area Code
ITEM 5. OTHER EVENTS.
On May 7, 2003, and May 9, 2003, complaints were filed in the District
Court, City and County of Denver, Colorado, naming Meteor Marketing, Inc. and
certain subsidiaries of Meteor Marketing, Inc. ("Borrowers") as defendants.
The first complaint was filed by The Farmers State Bank of Fort Morgan,
Colorado, seeking collection on two promissory notes having a total unpaid
balance of approximately $300,000.00. The notes were originally placed in
April 1999 in the total amount of $450,000.00 and were collateralized by
equipment, fixtures and vehicles owned by the Borrowers. In addition, Meteor
Industries, Inc. ("Industries"), the former parent company of the Borrowers,
provided commercial guarantees to the lender on the two promissory notes. The
terms of the notes provided for scheduled monthly payments in the total amount
of $6,430.
The second complaint was filed by an individual seeking collection of the final
installment payment of $99,000 provided for under the terms of a noncompetition
agreement that was entered into in April 1999 by the Borrowers. Industries
provided a guarantee for the payments due in accordance with the agreement.
The final payment was due on April 30, 2003.
In April 2001, the Registrant acquired the equity ownership of the Borrowers
held by Industries, and as a condition of that acquisition, was to have assumed
all debt guarantees previously issued by Industries. The Registrant provided
indemnification to the successor to Industries, Active IQ Technologies, Inc.,
for any claims that might result from such guarantees.
On April 30, 2003, the Registrant closed on the sale of its equity ownership in
Borrowers, effective January 1, 2003, to Sedco, Inc., a private company owned
by Ilyas Chaudhary, the Registrant's Chief Executive Officer. In addition to
the consideration received by the Registrant at the closing, the stock purchase
agreement provided the Registrant with indemnification from Sedco, Inc. for any
claims that may arise against the Registrant, including losses resulting from
guarantees or co-borrowings.
The Registrant has been advised by the Borrowers that efforts are underway to
resolve the disputes described in the complaints. The Borrowers anticipate
resolution of both complaints by July 31, 2003, without any loss being
sustained by the corporate guarantors.
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.
CAPCO ENERGY, INC.
Dated: June 17, 2003 By:/s/ Ilyas Chaudhary
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Ilyas Chaudhary
President