SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): December 1, 1998
FOUR M CORPORATION
(Exact name of registrant as specified in its charter)
MARYLAND 333-8043 52-0822639
(State or other jurisdiction of (Commission file number) (I.R.S. employer
incorporation or organization) identification no.)
115 STEVENS AVENUE
VALHALLA, NY 10595 10595
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (914) 749-3200
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Item 5. Other Events.
Four M Corporation (the "Company")is not in compliance with certain of
the financial covenants contained in its Credit Facility and as a result is in
default. Accordingly, the Company is unable to borrow under its Credit Facility
in order to make the interest payment due on December 1, 1998 under the
Company's 12% Senior Secured Notes due 2006 (the "Notes"). If such interest
payment is not made by December 31, 1998, the Company will be in default under
the Indenture governing the Notes.
The Lender under the Company's Credit Facility has offered to waive
such non-compliance under terms and conditions which are not satisfactory to the
Company. No assurance can be given that the Company will be able to obtain the
necessary waivers on terms and conditions satisfactory to the Company and
therefore borrow under its Credit Facility necessary to make the interest
payment due under the Notes.
Florida Coast Paper Company, L.L.C. ("Florida Coast") , a subsidary of
the Company, failed to make the interest payment due under Florida Coast's
12-3/4% First Mortgage Notes due 2003 (the "Florida Coast Notes") on December 1,
1998 as a result of a lack of funds. If Florida Coast does not make such
interest payment by December 31, 1998, Florida Coast will be in default under
the Indenture governing the Florida Coast Notes.
In addition, each of the Company and Stone Container Corporation has
failed to make certain payments to Florida Coast under the Output Purchase
Agreement. Failure to cure such default under the Output Purchase Agreement by
December 5, 1998, will constitute a default under the Indenture governing the
Florida Coast Notes.
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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 thereunto duly authorized.
FOUR M CORPORATION
By: /s/ Chris Mehiel
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Chief Operating Officer
Date: December 3, 1998
