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) December 30, 1999
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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)
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Item 5. Other Events.
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On December 30, 1999, ClimaChem, Inc. ("ClimaChem") paid the
December 1, 1999, interest payment on its $105 million of
outstanding 10 3/4% Senior Notes due 2007 (the "Notes"). The
interest payment was made during the grace period allowed under the
related Indenture, dated November 26, 1997.
As a result of the payment due under the Notes, ClimaChem's
parent company, LSB Industries, Inc. ("LSB") failed to maintain
minimum borrowing availability causing LSB to become subject to
certain adjusted tangible net worth and debt ratio requirements
under the LSB's revolving credit facility which LSB does not meet.
LSB's lender has agreed to forbear from exercising its rights under
the credit facility arising as a result of the adjusted tangible
net worth and debt ratio covenants for a period of 60 days from
January 1, 2000, in order to allow LSB and the lender to re-
negotiate these covenants and the terms of the credit facility. In
connection with such forbearance, the Company's lender has reduced
the Company's maximum revolving credit line from $65 million to $50
million.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
10.1 Press Release, issued December 30, 1999, which has
been previously filed as Exhibit 10.1 to LSB
Industries, Inc.'s Form 8-K, dated December 30,
1999, and is incorporated by reference.
10.2 Seventh Amendment to Amended and Restated Loan and
Security Agreement, dated January 1, 2000, by and
between Climate Master, Inc., International
Environmental Corporation, El Dorado Chemical
Company, and Slurry Explosive Corporation, which
has been previously filed as Exhibit 10.2 LSB
Industries, Inc.'s Form 8-K dated December 30,
1999, and is incorporated by reference.
10.3 First Amendment to Second Amended and Restated
Loan and Security Agreement, dated January 1,
2000, by and between Bank of America, N.A. and
LSB Industries, Inc., Summit Machine Tool
Manufacturing Corp., and Morey Machinery
Manufacturing Corporation, which has been
previously filed as Exhibit 10.3 to LSB
Industries, Inc.'s Form 8-K, dated
December 30, 1999, and is incorporated by
reference.
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SIGNATURES
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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: January 11, 2000.
CLIMACHEM, INC.
By: /s/ Jim D. Jones
_______________________________
Jim D. Jones,
Vice President - Treasurer
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