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UNITED STATES
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) June 15, 2006
ACCESS WORLDWIDE COMMUNICATIONS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 000-23489 52-1309227
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
4950 Communication Avenue, Suite 300, Boca Raton, Florida 33431
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (561) 226-5000
N/A
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.04 TRIGGERING EVENTS THAT ACCELERATE OR INCREASE A DIRECT FINANCIAL
OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT.
On June 15, 2006, we received confirmation from CapitalSource Finance, LLC
("CapitalSource"), of our default on that certain Revolving Credit, Term Loan
and Security Agreement (the "Credit Facility") dated as of June 10, 2003, as
amended, (the "Debt Agreement"). The default was a result of our non-compliance
with the minimum EBITDA financial covenant (the Default"), as defined in the
Debt Agreement.
As a result of the Default, CapitalSource may exercise its rights and remedies
as set forth in the Debt Agreement, including, among other things: (i) an
increase in the applicable rate of interest to the default rate in accordance
with the Debt Agreement; (ii) declare any and all loans and/or notes, all
interest thereon and all other obligations to be due and payable immediately
(the outstanding balance as of May 31, 2006 was approximately $5.5 million);
(iii) terminate future obligations under the Debt Agreement and/or (iv) exercise
any or all of the other rights and remedies provided under the Debt Agreement.
We are currently exploring strategic alternatives which could enable us to
restructure our current financing structure.
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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.
ACCESS WORLDWIDE COMMUNICATIONS, INC.
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(Registrant)
Date: June 20, 2006 By /s/ MARK WRIGHT
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General Counsel, Secretary
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