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 earliest event reported) January 24, 1997
SUNSTATES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5300 22-1664434
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
4600 Marriott Drive, Suite 200, Raleigh, North Carolina 27612
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 919-781-5611
(Former name or former address, if changed since last report.)
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Item 3. Bankruptcy or Receivership
On December 20, 1996, Sunstates Corporation's furniture manufacturing
subsidiary, Hickory White Company ("Hickory White"), entered into an Asset
Purchase Agreement whereby Hickory White will sell substantially all of its
assets to H-W Acquistion Group, Inc. ("Acquisition Group"). The Asset
Purchase Agreement is subject to the Acquisition Group obtaining adequate
bank financing and necessary equity capital. The purchase price is based,
in part, upon the levels of inventory and receivables. Based upon the levels
of such inventory and receivables at the end of December, 1996, the estimated
purchase price was approximately $8,600,000.
In order to facilitate the sale and to maximize the assets ultimately
available for distribution to its creditors, Hickory White Company, filed a
voluntary petition for protection and relief under Chapter 11 of the United
States Bankruptcy Code with the Clerk,of the United States Bankruptcy Court
for the Western District of North Carolina in Charlotte, North Carolina on
January 24, 1997. Hickory White will remain in possession and control of
its assets as Debtor-in-Possession.
At the date of the bankruptcy filing, January 24, 1997, Hickory White
reported assets of $12,364,237 and liabilities of $20,153,740. As of
January 24, 1997, Hickory White was endebted to Citicorp, N.A. in the
approximate amount of $6,667,142, secured by substantially all of the assets
of Hickory White. Also included in the reported liabilities is approximately
$9,388,458 of subordinated debentures held be various affilitates of
Sunstates Corporation.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
SUNSTATES CORPORATION
/s/ Glenn J. Kennedy
Date: February 6, 1997 Glenn J. Kennedy
Chief Financial Officer
