U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
NOTIFICATION OF LATE FILING
(Check One):
[ ] Form 10-K and Form 10-KSB [ ] Form 20-F [ ] Form 11-K
[X] Form 10-Q and Form 10-QSB [ ] Form N-SAR
For Period Ended: July 2, 1995
[ ] Transition Report on Form 10-K
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q
[ ] Transition Report on Form N-SAR
For the Transition Period Ended:_________________________________
_________________________________________________________________
Nothing in this form shall be construed to imply that the
Commission has verified any information contained herein.
_________________________________________________________________
If the notification relates to a portion of the filing checked
above, identify the Item(s) to which the notification
relates:_________________________________________________________
_________________________________________________________________
PART I -- REGISTRANT INFORMATION
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Full Name of Registrant: CHAMPION PARTS, INC.
Address of Principal Executive Office (Street and Number)
2525 W. 22nd Street
Oak Brook, IL 60521
City, State and Zip Code
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PART II -- RULES 12b-25 (b) AND (c)
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_X_ (a) The reasons described in reasonable detail in Part III
of this form could not be eliminated without unreasonable effort
or expense;
_X_ (b) The subject quarterly report on Form 10-Q, will be filed
on or before the fifth calendar day following the prescribed due date;
___ (c) The accountant's statement or other exhibit required
by Rule 12b-25(c) has been attached if applicable.
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PART III -- NARRATIVE
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In June 1995 the Registrant announced that its Board of Directors had adopted a
plan to exit the manufacture and sale of automotive electrical (alternators
and starters) and mechanical (clutches and water pumps) products to traditional
market customers in the eastern United States. Subsequent to this announcement,
the Registrant was told by its largest customer and another major customer that
they intended to obtain electrical, mechanical and carburetor products from
other sources. As a result of these decisions, the Registrant is taking steps to
significantly downsize its operations to reflect an estimated 65% reduction in
sales from 1994 levels. The Registrant is evaluating options with respect to its
west coast operation.
In June 1995 the Registrant had also announced that it continued to be in
default of its bank credit facility. On August 7, 1995, the Registrant announced
that it had reached an agreement with its banks to amend and extend the credit
facility to January 1996. The amendment provided, among other things, that the
Registrant would initially be able to borrow additional amounts under the credit
facility followed by a declining facility commensurate with the company's
planned downsizing. The Registrant provided the banks with additional real
estate as collateral for the additional borrowings.
The Registrant is analyzing the impact of the recent decision to downsize
operations and the extension to the bank credit agreement. Both of these items
will have a pervasive impact on the Registrant's financial statements and MD&A.
The Registrant requires the additional five days following the prescribed due
date for the 1995 second quarter 10-Q to complete financial statement and
disclosure requirements to reflect these significant items.
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PART IV -- OTHER INFORMATION
_________________________________________________________________
(1) Name and telephone number of person to contact in regard
to this notification
Mark Smetana (708) 573-6264
(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under section 13
or 15(d) of the Securities Exchange Act of 1934 or Section 30 of
the Investment Company Act of 1940 during the preceding 12
months or for such shorter period that the registrant was
required to file such report(s) been filed? If the answer is
no, identify report(s).
[X] Yes [ ] No
(3) Is it anticipated that any significant change in results
of operations from the corresponding period for the last fiscal
year will be reflected by the earnings statements to be included
in the subject report or portion thereof?
[X] Yes [ ] No
If so, attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the
reasons why a reasonable estimate of the results cannot be made.
See Attached Press Release dated August 7, 1995.
CHAMPION PARTS, INC.
(Name of Registrant as specified in charter)
has caused this notification to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: August 15, 1995
By: /s/ Mark Smetana
Mark Smetana
Vice President Finance & Secretary
_________________________________________________________________
ATTENTION
Intentional misstatements or omissions of fact constitute
Federal Criminal Violations (See 18 U.S.C.1001).
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<PAGE>
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PRESS RELEASE
_________________________________________________________________
Champion Parts, Inc.
2525 22nd Street, Oak Brook, IL 60521
Contact: Thomas W. Blashill
Phone: 708-573-6600
FAX: 708-574-3128
FOR IMMEDIATE RELEASE
CHAMPION PARTS, INC. ANNOUNCES BANK AGREEMENT EXTENSION
OAK BROOK, IL, August 7, 1995 -- Champion Parts, Inc.
(NASDAQ:CREB) announced today that it has received an extension
of its bank agreement through January 8, 1996. The extension,
which supports the company's recently announced restructuring
plan, initially provides additional financing for working
capital and general business needs followed by a declining
facility commensurate with the company's plan to downsize its
operation. In exchange for the additional financing the company
pledged a portion of its real estate as collateral. "Our banks
have displayed their support of the company's plan to refocus
the business through the extension of the credit agreement,"
said Thomas W. Blashill, executive vice president. "This is an
important step in our restructuring plan."
The company stated that it would continue to concentrate on its
restructuring plan, which calls for a significant downsizing of
the business through focusing on fewer products and market
segments. As previously disclosed, the company is exiting the
manufacture and supply of automotive electrical (starters and
alternators) and mechanical (water pumps and clutches) product
lines to the traditional wholesale and retail markets. The
company has recently completed its exit of these products and
segments in the eastern United States and is currently
attempting to divest its Fresno, California facility, which
manufactures and distributes these products to the western
United States. The company plans to continue to manufacture and
supply carburetors and constant velocity joint assemblies for
all market segments and maintain all aspects of its
relationships with its original equipment manufacturer
aftermarket customers. The company expects to reduce net sales
by approximately 65% from its 1994 level of $95 million. The
plan calls for a reduction in working capital, primarily
inventory and accounts receivable, commensurate with the
reduction in sales.
Through this process it is exiting or narrowing several
customer relationships. The company is in the process of
collecting accounts receivable balances from these customers.
The proceeds ultimately realized may be impacted should any of
these customers desire to return product as settlement towards
amounts due.
The company recently informed its largest customer that as part
of the downsizing it would no longer supply automotive
electrical and mechanical. This customer subsequently made a
decision to discontinue the purchase of all other products,
including carburetors. Also, the company was recently informed
by another major customer that it was discontinuing its purchase
of carburetors. The company is currently in discussions with
other customers to replace the loss of this carburetor business,
which is approximately $9 million in net sales.
The company expects to record a charge in the second quarter of
1995 to reflect the impact of the downsizing.
The company also announced that Donald G. Santucci has resigned
as president and chief executive officer and as a director. Mr.
Santucci, who had been on a medical leave of absence, will be
available as a consultant to the company. Calvin A. Campbell,
Jr. also recently resigned as a director.
