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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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) March 31, 1999.
Broughton Foods Company
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(Exact name of registrant as specified in its charter)
Ohio 0-23429 31-4135-025
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(State or other juris- (Commission File No.) (IRS Employer Identi-
diction of corporation) fication No.)
210 N. Seventh Street
P.O. Box 656
Marietta, Ohio 45750-0656
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (740) 373-4121
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Not Applicable
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(Former name or former address, if changes since last report)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
Updating its previous reports on United States Department of Agriculture
("USDA") proceedings, Broughton Foods Company ("Broughton"), an Ohio
corporation, reports that on April 7, 1999, the USDA advised that it had
debarred the Southern Belle Division of Broughton from federal procurement and
non-procurement programs for a period of three years, effective from December
31, 1997. During the period of debarment, Southern Belle is excluded generally
from engaging in contracts and other transactions involving federal procurement
and federal non-procurement programs governmentwide, unless an agency head or
other authorized designee grants an exception with respect to a particular
transaction.
Broughton is currently considering its options with respect to the
Southern Belle Division debarment, including whether or not to appeal the
debarment decision.
The USDA also notified Broughton on April 7, 1999, by notice dated and
effective March 31, 1999, that the USDA had suspended Broughton, and is
proposing to debar Broughton from engaging in contracts and other transactions
involving federal non-procurement transactions, with the effect that Broughton
is excluded generally from engaging in contracts and other transactions
involving both federal non-procurement and federal procurement programs
governmentwide during the period of the suspension. The proposed
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debarment of Broughton, if ordered, would remain in effect for a period
commensurate with the USDA's determination of the seriousness of the alleged
cause, generally by regulation not to exceed three years. The suspension and
proposed debarment is based upon Broughton's delivery to several schools of
half-pint containers of fluid milk which allegedly failed to contain the minimum
required quantities of fluid milk, and the alleged failure of such containers of
milk to meet net content labeling or contract requirements.
Broughton intends to oppose the suspension and proposed debarment of
Broughton through the administrative process. Broughton's management is unable
at this time to predict the outcome of the USDA proceedings or their effect on
Broughton's financial position and results of operations. However, neither the
Southern Belle Division debarment nor the Broughton suspension preclude the
performance of contracts existing at the time of debarment or suspension.
Further, under existing USDA regulations, neither debarment nor suspension
preclude the Southern Belle Division or Broughton from obtaining and performing
contracts awarded under federal non-procurement programs administered by the
USDA Food and Nutrition Service.
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.
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BROUGHTON FOODS COMPANY
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(Registrant)
/s/ Todd R. Fry
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Date: April 12, 1999 Todd R. Fry, Chief Financial Officer
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