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) January 31, 2000
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Gibbs Construction, Inc..
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(Exact name of issuer as specified in its charter)
Texas 1-14088 75-2095676
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(State or other jurisdiction (Commission File (I.R.S.Employer
of incorporation) Number) Identification No.)
1855 Wall Street, Garland, TX 75041
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(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code: (972) 278-3433
(Former name, former address and former fiscal year,
if changed since last report)
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Item 5. Other Events
On February 4, 2000, the registrant release the following press release:
GIBBS CONSTRUCTION ANNOUNCES FUNDING ASSISTANCE AGREEMENT AND OPERATING LOSSES
GARLAND, TEXAS- (BUSINESS WIRE)-Feb 4, 2000-Gibbs Construction, Inc.
(Nasdaq:GBSE-news) announced today that it has requested and received financial
assistance from one of its principal sureties relating to the Company's
temporary lack of cash flow to make certain payments relative to bonded
construction contracts.
Effective Jan. 18, 2000, Gibbs Construction, Inc., and its two principal
stockholders, Danny Gibbs and Tony Gibbs, entered into a joint control and
escrow agreement whereby the surety has agreed to provide funds to complete
contract obligations and pay vendors.
As part of the agreement, Gibbs Construction agreed to grant the surety a
security interest in certain Company assets, and Danny and Tony Gibbs agreed to
grant the surety a security interest in their ownership of 2,000,000 shares of
the Company's stock.
Danny Gibbs, the Company's president, stated, "Two of these five bonded
contracts have resulted in significant losses. In addition, the company has
experienced a temporary decline in new business from some of our core clients
such as Just For Feet and Office Max resulting in a decrease of our backlog of
business. To compensate, the Company is pursuing an aggressive marketing
strategy."
The Company also announced that it has reorganized its staff to enable it to
operate efficiently at 60% of its former level. Gibbs continued, "The
reorganization of our staff and reduction of expenses wherever possible will
improve our ability to operate at lower cost, although we expect operating
losses to continue through the current quarter. Certainly, the Company is
gratified by our surety's assistance and obvious display of confidence in our
experienced construction team by working with us during this time of adjustment.
Management is totally committed to fully develop its opportunities for
improvement of shareholder value as diligently and creatively as possible."
Gibbs is a general contractor providing construction services for retail,
office, and specialty real estate. Headquartered in Garland, Texas, the company
has completed real estate construction projects in the US and Puerto Rico.
This press release contains forward-look statements which reflect management's
best judgement based on currently known information. Forward-looking statements
n this news release are made pursuant to the safe harbor provisions of Federal
Securities Laws.
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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, thereby
duly authorized.
Date: February 14, 2000
Gibbs Construction, Inc
/s/ Danny R. Gibbs
Danny R. Gibbs, President
