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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 1, 2000
PEN HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Tennessee 333-60599 62-0852576
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
5110 Maryland Way, Suite 300 Brentwood, Tennessee 37027
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (615) 371-7300
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Item 5. Other Events.
On February 25, 2000, in a two-to-one split decision, the Commonwealth of
Kentucky Court of Appeals upheld the September 1998 Floyd County Kentucky
Circuit Court jury verdict in favor of Cheyenne Resources, Inc. and its
wholly-owned subsidiary, PC&H Construction, Inc. (collectively, "Cheyenne"). The
Floyd County Kentucky Circuit Court jury verdict awarded Cheyenne damages of
approximately $9.5 million. This lawsuit was brought against The Elk Horn Coal
Corporation ("Elk Horn," a wholly-owned subsidiary of Pen Holdings, Inc. (the
"Company")) on a case relating to a coal lease that was entered into by Elk Horn
prior to the Company's purchase of Elk Horn.
The Company intends to file a petition for re-hearing with the Commonwealth of
Kentucky Court of Appeals. Pending the outcome of that motion, the Commonwealth
of Kentucky Court of Appeals' decision is reviewable by the Supreme Court of
Kentucky. The Supreme Court of Kentucky has complete discretion to determine
whether to accept Elk Horn's request for review of the Commonwealth of Kentucky
Court of Appeals' decision. Notwithstanding the recent decision of the
Commonwealth of Kentucky Court of Appeals, Elk Horn's litigation counsel and
management believe that there are meritorious grounds for reversal and/or
modification of this verdict on appeal on the issue of liability and damages.
The Company cannot determine whether the resolution of this matter will have a
material adverse impact on the Company's financial position or results of
operations.
This report contains forward-looking statements. There are risks and
uncertainties that would cause actual results to differ from those contained in
the forward-looking statements, including without limitation, the uncertainties
of the Cheyenne litigation.
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SIGNATURE
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.
Date: March 1, 2000 PEN HOLDINGS, INC.
By: /s/ Mark A. Oldham
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Name: Mark A. Oldham
Title: Senior Vice President,
Secretary and Treasurer
