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 the earliest event reported): December 22, 1999
(December 20, 1999)
New York Bagel Enterprises, Inc
(Exact name of Registrant as specified in its charter)
0-21205
(Commission file number)
Kansas 73-1369185
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
115 East 8th Street
Stillwater, Oklahoma 74074
(Address of principal executive offices, including zip code)
405-624-3700
(Registrant's telephone number, including area code)
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Item 5. Other Events.
On December 20, 1999, New York Bagel Enterprises, Inc., received a
default notice from Bank of America, the Company's senior lender, concerning
the Company's loan agreement, with a revolving line of credit and term loan
facilities, due to failure to pay the indebtedness timely. The bank has
demanded that the Company make immediate payment of the outstanding balance of
approximately $1.7 million. The bank stated that, commencing December 31,
1999, it will pursue and enforce the rights and remedies available to it
pursuant to such loan agreements, including commencement of suit against the
Company and the collection and disposition of the Company's assets. The bank
stated that the loan is currently subject to the default interest rate. The
credit facility is secured by substantially all of the Company's assets. The
loan matured on September 1, 1999. Since the maturation of the loan, the
Company has been attempting to renegotiate such loan with the bank in
coordination with the Company's September 29, 1999, letter of intent to merge
with New World Coffee - Manhattan Bagel, Inc. The Company believes that such
default and any resulting action by the bank would have a material effect on
the Company's ability to continue to conduct business.
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.
NEW YORK BAGEL ENTERPRISES, INC.
/s/Richard Randall Webb
___________________________________
Richard Randall Webb
Chief Financial Officer, Treasurer
and Secretary
Dated: December 22, 1999
