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
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Date of Report: November 3, 1998
WELDOTRON CORPORATION
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(Exact name of Registrant as specified in its charter)
NEW JERSEY 22-1602728
(State or other jurisdiction
of incorporation of organization) (IRS Employer Identification No.)
Commission File Number 1-8381
111 Chimney Rock Road
Bridgewater, New Jersey 08807
(Address of Principal Exec. Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (732) 748-4600
Item 5. Other Events.
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As reflected in the Company's most recent Form 10-K, filed with the Securities
and Exchange Commission on October 6, 1998, the Company had suffered recurring
losses from operations, had significant deficiencies in working capital and net
assets, and was delinquent in paying its liabilities, all of which were
indicated in the filing as raising substantial doubt about the Company's ability
to continue as a going concern.
Recently, certain major customers of the Company were acquired by new owners and
this, coupled with the Company's continued weak financial condition, resulted in
such customers reducing their orders to the Company. Since the filing of the
10-K, the Company's largest customer advised the Company that it would be
significantly reducing its business with the Company due to the Company's
continued weak financial condition and the change in the customer's ownership.
The reduction in customer orders and sales has resulted in a steep decline in
the inventory and receivable levels of the Company, thus reducing availability
under the Company's line of credit. With no additional sources of financing, and
given the lack of availability under its existing line of credit, the Company
has determined that it is unable to continue operations. The Company is
cooperating with its senior lender to devise a plan to effect a wind-down of the
operations of the Company and an orderly liquidation of its assets. At present,
it is not anticipated that the proceeds from such liquidation will exceed the
amount necessary to satisfy the secured claims of the senior lender.
S I G N A T U R E
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.
WELDOTRON CORPORATION
Registrant
By: /s/Lawrence H. Bowen
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Lawrence H. Bowen
Chief Operating Officer
Date: November 3, 1998
