UNITED STATES
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): April 25, 2000
----------------
SFC New Holdings, Inc.
-----------------------------
(Exact name of registrant as specified in its charter)
State of Delaware 33-383063 52-2173533
- -----------------------------------------------------------------------------
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation or organization) Identification No.)
520 Lake Cook Road, Suite 550, Deerfield, IL 60015
- -------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 405-5300
-------------
ITEM 5. OTHER EVENTS
Legal Proceedings Update
SFC New Holdings, Inc. ("SFC"), Saputo Group ("Saputo") and
Dean Metropoulos have reached a global settlement (the
"Settlement") with respect to the ongoing Cacique case. In
connection with the Settlement, all lawsuits and claims
involving SFC that concern the Cacique case were dismissed
with prejudice, including: (a) the lawsuit filed by Saputo
seeking to require SFC to post an appeal bond in the Cacique
case and (b) the lawsuit filed by Mr. Metropoulos concerning
his indemnification from Stella. In addition, as part of
the Settlement, Saputo assumed full responsibility for and
control of the Cacique litigation and fully and finally
released SFC of any and all indemnity obligations with
respect to the litigation. In exchange for the dismissals
and release of indemnity, SFC has made a payment to Saputo
that is substantially less than the currently outstanding
verdict of approximately $24 million. This payment may be
reduced (but cannot be increased) by certain future amounts
that will be determined by the ultimate resolution of the
Cacique case.
Management believes that this global Settlement is in the
best interests of SFC. In particular, management believes
that this Settlement: (a) limits SFC's exposure to the
Cacique case to an amount that is substantially less than
the currently outstanding verdict of approximately $24
million, (b) eliminates the need to incur significant
additional legal expenses to defend against the Cacique case
and the previously pending lawsuits, (c) eliminates the
possibility that SFC would be required to post a $36 million
appeal bond, and (d) allows SFC management to focus on
maximizing the value of its businesses.
SIGNATURES
Pursuant to 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.
SFC NEW HOLDINGS, INC
---------------------
(Registrant)
Date: April 25, 2000 By: /s/ Robert L. Fishbune
-------------------
Robert L. Fishbune
Vice President and
Chief Financial Officer
