SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported) July 21, 1997
CHASE PACKAGING CORPORATION
(Exact name of registrant as specified in its charter)
Texas 0-21609 93-1216127
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
2550 N.W. Nicolai Street
Portland, OR 97210
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (503) 228-4366
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Item 2. Acquisition or Disposition of Assets.
Effective July 21, 1997, Chase Packaging Corporation (the
"Company") sold to Lockwood Packing Corporation Idaho ("Lockwood")
the Company's operation at Idaho Falls, Idaho, as a going concern.
The assets sold included substantially all of the Company's
equipment, furniture, fixtures, and other assets located in the
Company's Idaho Falls, Idaho facility for a total of $75,000.00.
In addition, the Company sold inventory from the Idaho Falls
operation to Lockwood for $255,000.00. The total proceeds of
$330,000.00 were deposited with the Company's bank to pay down the
Company's loan balance with the bank.
Lockwood has entered into a lease with the Company for the
Company's Idaho Falls facility. The Company intends to sell the
Idaho Falls facility in the near future, and, upon such sale, it is
intended that the new owner will lease the property to Lockwood and
that the Company's lease with Lockwood will be terminated.
Item 5. Other Events.
On July 25, 1997, the Company notified its creditors by mail
that the Company is beginning an orderly liquidation of all of its
remaining assets outside of a formal bankruptcy or receivership
proceeding in a manner which is intended to maximize the asset
values. The Company has retained the firm of Edward Hostmann, Inc.
to assist the Company in such liquidation. Although it is
difficult to determine the return to creditors from such
liquidation, at the present time the Company estimates that the
general creditors will receive a distribution equal to ten to
fifteen (10-15%) of each creditor's claim.
The Company has experienced losses for the past four years,
and the Company's secured lender has decided not to renew the
Company's operating line of credit. The Company's Board of
Directors has determined that it is in the best interest of the
Company and all of its creditors to liquidate in an orderly
fashion.
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.
July 31, 1997 CHASE PACKAGING CORPORATION
By: /s/ DOUG KIRKPATRICK
Doug Kirkpatrick
President and Treasurer
(Principal Executive
Officer and Principal
Financial and
Accounting Officer)
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