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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):
                                  May 21, 2001



                           SPARTA SURGICAL CORPORATION
             (Exact name of registrant as specified in its charter)


     Delaware                         1-11047                     22-2870438
(State or other juris-               (Commission             (I.R.S. Employer ID
 diction of incorpor-                File Number)                   Number)
      tion)


                                  Olsen Centre
                   2100 Meridian Park Blvd., Concord, CA 94520
                    (Address of principal executive offices)



        Registrant's telephone number, including area code (925) 417-8812



                                 not applicable
          (Former name or former address, if changed since last report)


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SPARTA SURGICAL CORPORATION

Form 8-K

ITEM 5. OTHER EVENTS

CREDIT FACILITY

The Company's bank has  unilaterally  increased the reserve required to be taken
against the Company's inventory. This action automatically caused the Company to
become  overdrawn on its credit  facility,  which has resulted in the  Company's
being in default.  The Company has no additional  availability  under the credit
facility.  The  Company  disagrees  with  the  bank's  position  regarding  this
inventory  reserve.  Despite  negotiations  with the bank regarding this reserve
amount and a  forbearance  arrangement,  the Company has been unable to reach an
agreement with the bank.

The Company is seeking to negotiate  alternative lending arrangements with other
potential lenders and to find other alternatives to resolving this situation. If
the bank attempts to collect repayment of the full amounts owing to it under the
credit facility,  the Company has insufficient  assets to repay the bank at this
time.

                                    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.

                                             SPARTA SURGICAL CORPORATION
                                             (Registrant)

                                             by: /s/ Thomas F. Reiner
                                             ---------------------------
                                             Thomas F. Reiner
                                             President & Chief Executive Officer

Dated:  May 21, 2001