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) March 1, 2000
____________________________
CLIMACHEM, INC.
____________________________________________________________________________
(Exact name of registrant as specified in its charter)
Oklahoma 73-1528549
______________________ ________________________ ___________________
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
16 South Pennsylvania Avenue, Oklahoma City, Oklahoma 73107
_____________________________________________________ ________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (405) 235-4546
______________
Not applicable
____________________________________________________________________________
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
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On March 1, 2000, ClimaChem, Inc. (the "Company") amended its revolving
credit facility (the "Credit Facility"). The Company had previously fallen
below certain adjusted tangible net worth and debt ratio requirements under
the Credit Facility between the lender and certain of the Company's subsidi-
aries. The Company's lender agreed to forbear from exercising its rights
under the Credit Facility arising as a result of the financial covenants
pending the amendment of the Credit Facility.
The March 1, 2000, amendments to the Credit Facility eliminated the
Company's failure to meet the financial covenants under the Credit Facility.
The amendment, among other things, increased the annual interest rate
applicable to the Company's revolving credit facility and letters of credit
by one percent and reduced the Company's net worth and interest coverage
ratios. The amendment further provides that if new financial covenants for
the fiscal year beginning in January 2001 are not agreed to by the lender by
October 1, 2000, the Credit Facility will terminate automatically on
December 31, 2000.
Item 7. Financial Statements and Exhibits.
_________________________________
(c) Exhibits.
10.1 Press Release, issued March 7, 2000, which was previously filed
as Exhibit 10.1 to LSB Industries, Inc.'s Form 8-K, dated
March 1, 2000, is incorporated by reference.
10.2 Eighth Amendment to Amended and Restated Loan and Security
Agreement, dated March 1, 2000, by and between Climate Master,
Inc., International Environmental Corporation, El Dorado Chemical
Company, and Slurry Explosive Corporation, which was previously
filed as Exhibit 10.2 to LSB Industries, Inc.'s Form 8-K dated
March 1, 2000, is incorporated by reference.
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.
Dated: March 9, 2000.
CLIMACHEM, INC.
By: /s/ Tony M. Shelby
__________________________________________
Tony M. Shelby,
Senior Vice President and
Chief Financial Officer
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