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: May 26, 2000
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D & E COMMUNICATIONS, INC.
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(Exact Name of Registrant as Specified in its Charter)
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Pennsylvania 000-20709 23-2837108
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
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Brossman Business Complex, 124 East Main Street, P. O. Box 458, Ephrata, PA 17522
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(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code: (717) 733-4101
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D & E Communications, Inc.
Item 5. Other events.
The Registrant indirectly holds a one-third ownership interest in PenneCom
B.V. (PenneCom), a provider of local exchange telephone and data transmission
services in Central Europe. As reported in the Registrant's Report on Form 10-Q
for the quarter ended March 31, 2000, a dispute arose between Boles Knop &
Company, L.L.C. (Boles) and PenneCom, and several other parties affiliated with
PenneCom, regarding fees due under the terms of an investment banking agreement
with Boles. On May 26, 2000, a settlement agreement was signed resolving all
claims relating to the dispute. Pursuant to the settlement agreement, PenneCom
made a payment of $1,250,000 to Boles on June 5, 2000. The parties to the
settlement agreement agreed, among other things, that the payment was not an
admission that any claims of Boles had merit, and acknowledged that the parties
desired to avoid the expense and uncertainties of discovery and a trial. As a
result of this settlement, the Registrant will include its one-third share of
this expense in its equity in net losses of affiliates in its second quarter
ending June 30, 2000.
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D & E Communications, Inc.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
D & E COMMUNICATIONS, INC.
(Registrant)
Date: June 9, 2000 By: /s/ Thomas E. Morell
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Mr. Thomas E. Morell, Vice President,
Chief Financial Officer and Treasurer
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