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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 13, 2000
KEY PLASTICS L.L.C.
(Exact name of Registrant as specified in its charter)
Michigan 333-26729 35-1997449
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
21333 Haggerty Road Suite 200
Novi, Michigan 48375
(Address of principal executive offices)
Registrant's telephone number, including area code: (248) 449-6100
N/A
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. OTHER EVENTS.
On March 13, 2000, Key Plastics L.L.C. (the "Registrant") issued a press release
announcing that it believed it would miss the coupon payment due March 15, 2000,
on its 10 1/4% senior subordinated notes due 2007, due to liquidity problems.
The Registrant also announced in the press release that it had received a seven
day waiver of default from its lenders in order to continue its dialogue with
the lenders to reach a long term resolution to its liquidity problems and that
it had hired Peter J. Solomon Company as its investment banker. The press
release is attached hereto as Exhibits 99.1, and incorporated herein by
reference.
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 99.1 Press Release, dated March 13, 2000
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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 thereunto duly authorized.
KEY PLASTICS L.L.C.
/s/Larry D. Schwentor
----------------------------
Larry D. Schwentor
Senior Vice President Finance &
Administration/Chief Financial
Officer
Dated: March 15, 2000
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Exhibit Index
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Exhibit No. Description
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99.1 Press Release, dated March 13, 2000
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE CONTACT PERSON:
David L. Resnick
William K. Shaw
Peter J. Solomon Company
(212) 508-1661
KEY PLASTICS ANNOUNCES IT WILL
MISS COUPON PAYMENT
NOVI, MICHIGAN, MARCH 13, 2000 - - - Key Plastics, L.L.C., one of the
world's leaders in the automotive plastics industry, announced today that it
believes it will miss the coupon payment due March 15, 2000, on its 10 1/4%
senior subordinated notes due 2007, due to a liquidity problem. The payment, due
on the $125 million of notes outstanding, is $6.8 million. The company indicates
that it is currently experiencing a liquidity crunch and is working hard to
resolve it.
"The company truly regrets that it will not be able to make this coupon
payment," said David Benoit, Chief Executive Officer of Key Plastics, L.L.C. "We
are working closely with our lenders to try to develop a long term solution to
our liquidity problems and hope to be able to share some solutions with the
bondholders soon." Benoit indicates that the company today received a seven day
waiver of default from its lenders in order to continue its dialogue with the
lenders to reach a long term resolution.
Key also announced that it has hired Peter J. Solomon Company as its
investment banker to help develop the long term strategy for addressing its
liquidity problems. Peter J. Solomon Company is known for its expertise in
financial restructurings. The company has been informed that an informal
bondholders' committee has been formed, and it looks forward to working with
such committee in the future.
"Key's reputation for precision engineered products is second to none. We
have an unblemished reputation for quality, service and timeliness of delivery.
We look forward to fixing our balance sheet, so that, we can once again focus
our attention on designing and manufacturing the best precision plastic
components in the automotive industry," said Benoit.
Key Plastics designs and manufactures highly engineered precision plastic
components and sub-systems such as decorative bezels, pressurized bottles and
reservoirs, interior and exterior door handles, air louvers, speaker grilles,
air bag covers, mirror shells, and exterior ornamentation for worldwide
automotive applications. It currently operates 15 manufacturing facilities in
the U.S., 3 in Europe, 4 in Mexico, and one in Canada. Its World Headquarters
and Technical Center is in Novi, Michigan. Key Plastics' Novi Headquarters and
Plymouth, MI Test and Validation Laboratory are ISO9001 certified. All of its
manufacturing facilities are QS9000 certified.
"GROWTH THROUGH EXCELLENCE"
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