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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 June 24, 1999)
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U.S. Digital Communications, Inc.
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(Exact Name of Registrant as Specified in Charter)
Nevada 0-21225 52-2124492
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(State or Other Commission File (IRS Employer
Jurisdiction Number) Identification
Incorporation No.)
2 Wisconsin Circle, Chevy Chase, Maryland 20815
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (301) 961-1540
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5 Other Events
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The Registrant, on Thursday, June 24, 1999, issued a press release.
The full text of which is printed below.
Press Release Copy
June 24, 1999
Robert J. Wussler, Chairman of the Board of U.S. Digital Communications, Inc.
(OTC Bulletin Board: USDI - news), announced today that the Company is actively
exploring specific merger and asset-sale opportunities in an effort to resolve
its urgent liquidity problems.
Mr. Wussler stated that, "As a result of the widely reported difficulties
marketing satellite telephone systems, International Satellite Group, Inc.
('Insat'), our principal operating subsidiary, has experienced severe shortfalls
in sales and revenue. As previously reported, this shortfall has resulted in a
liquidity problem for both Insat and U.S. Digital. Insat has curtailed its field
sales operations and certain other functions in order to reduce cash
requirements. It has been able to continue to provide its customers with
uninterrupted satellite telephone services and to make direct sales on a limited
basis. However, additional short-term capital resources will have to be secured
in order to maintain Insat's on-going operations.
"Our Board of Directors has instructed management to explore resolving liquidity
problems through merger opportunities and/or sale of equipment and customer-list
assets. We are currently engaged in merger discussions with more than one
potential partner and have been approached by a number of potential purchasers
of key assets. There is, of course, no assurance that any of these discussions
will result in agreements."
Wussler concluded, "While we continue to explore our strategic options, the
Company is also negotiating with key suppliers, investors and others to manage
its current cash deficit. We have been successful in securing additional
financing for our immediate needs as well as favorable terms from certain key
vendors. However, there can be no assurance that such discussions will continue
to yield satisfactory results and that corporate operations will continue
uninterrupted."
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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.
U.S. DIGITAL COMMUNICATIONS, INC.
(Registrant)
Date: July 12, 1999 By: /s/ Robert J. Wussler
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Name: Robert J. Wussler
Title: Chairman
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