================================================================================
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):
March 8, 2002
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 incorporation) File Number) Number)
849 E Stanley Blvd, Livermore, CA. 94550
(Address of principal executive offices)
Registrant's telephone number, including area code (925) 373-0374
not applicable
(Former name or former address, if changed since last report)
================================================================================
Sparta Surgical Corporation
Form 8-K
ITEM 5 - OTHER EVENTS
- ---------------------
On February 21, 2002, the Company disclosed it received a five days advance
notice of demand of payment of approximately $640,000 from Thomas F. Reiner Sr.,
("Reiner") the Company's Chairman and CEO, under those certain Security
Agreements and Promissory Notes ("Notes") entered into with Reiner pursuant to
the May 23, 1997 Working Capital Credit Facility Agreement, and as amended on
August 2, 2001 ("Reiner Loans"). The Security Agreements and Notes are secured
by a first position security interest in all of the Company's assets in favor of
Reiner. The Company's operations continue to be cash flow negative and it
further lacks any working capital to pay off the Reiner Loans. The Company is
continually downsizing its operation by further consolidating various positions,
including sales, marketing and accounting departments. In addition, to further
reduce operating expenses, at the sole option of Reiner, the Company has not
paid a salary to him since July 2001. In order to continue the Company's
operations, it will be necessary to obtain additional working capital as soon as
possible. On February 28, 2002, the Company was served with a Complaint filed by
Reiner, Case#20204/802 in the Superior Court of California, County of Almeda,
for default under the Notes and Security Agreements pursuant to a judicial
foreclosure. If the Company is unsuccessful in finalizing financing to repay the
Reiner Loans, the Company will lose all of its assets to Reiner.
SIGNATURE
Pursuant to the requirements of the Securities and 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
Date: March 8, 2002
By /s/ Thomas F. Reiner
---------------------------------------
Thomas F. Reiner,
Chairman of the Board,
President and Chief Executive Officer