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
September 28, 2000 (September 13, 2000)
Date of Report (Date of earliest event reported)
Baron Capital Trust
Exact name of registrant as specified in its charter
Delaware 333-35063 31-1574856
State or other jurisdiction Commission IRS Employer
of incorporation File Number Identification No.
Baron Capital Trust
7826 Cooper Road
Cincinnati, Ohio 45242
Address of principal executive offices, zip code
513-984-5001
Registrant's telephone number,
including area code
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Item 5. Other Events.
On or about September 13, 2000, the Registrant received notice from counsel
to KeyBank National Association ("Lender") that Burlington Residential, Ltd.
("Borrower"), the owner of a residential apartment property under development in
Boone County, Kentucky, had defaulted on its loan from Lender for the following
reasons: (i) its failure to pay current interest due and meet certain equity
requirements and other covenants under the loan agreements (including the
applicable note), (ii) adverse changes in the respective financial conditions of
Borrower and the Registrant, which has guaranteed 35% of the loan, and (iii) the
Registrant's failure to meet certain tangible net worth tests set forth in the
loan agreements.
Lender indicated in the notice that since the default has not been cured
within applicable grace periods under the loan agreements, it was exercising its
right to accelerate the loan and demanded immediate payment of the outstanding
principal balance of the loan, together with all interest thereon and amounts
owed to Lender for charges, fees and expenses, in the amount of $5,633,135.26,
and it was relieved of any commitment to loan any additional funds to Borrower
for the existing phase and additional phases of the construction project which
is the subject of the loan.
Gregory K. McGrath, a principal of Borrower, has indicated to a
representative of the Registrant that Lender has agreed to extend action for 60
days while Borrower seeks to reach an arrangement with Lender.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be filed on its behalf by the
undersigned hereunto duly authorized.
BARON CAPITAL TRUST
Date: September 28, 2000 By : Mark L. Wilson
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Mark L. Wilson,
Chief Financial Officer
