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): September 22, 1997
_____________________
Exact Name of Registrant as
Specified in Its Charter: DDL ELECTRONICS, INC.
______________________________
DELAWARE 1-8101 33-0213512
_____________________________ ____________ _________________
State or Other Jurisdiction of Commission I.R.S. Employer
Incorporation or Organization File Number Identification No.
Address of Principal Executive Offices: 2151 Anchor Court
Newbury Park, CA 91320
_________________________
Registrant's Telephone Number, Including
Area Code: (805) 376-9415
_________________________
Former Name or Former Address,
if Changed Since Last Report: Not applicable
_________________________
Item 5. Other Events.
In a press release dated September 26, 1997, a copy of which is
attached as Exhibit 99.1, DDL Electronics, Inc. ("DDL") announced that DDL
has commenced litigation against Century Electronics Manufacturing, Inc.
("Century") over Century's breach of a financing agreement entered into in
May 1997. Under the agreement, Century agreed to provide a loan to DDL
of up to $3.3 million by June 1, 1997 for the retirement of certain
short-term debt of DDL. Such financing was not made available by
Century. On June 30, 1997, DDL obtained alternate financing, which
enabled it to repay its short-term debt. DDL's complaint includes
claims for breach of contract and fraud, and seeks $5,000,000 in actual
damages plus punitive damages. The complaint was filed in the Superior
Court of the State of California for the County of Ventura on September 22,
1997. Century has not yet answered the complaint or made an appearance in
the case.
Item 7. Exhibits.
Exhibit Description
_______ ____________
99.1 Press release dated September 26, 1997.
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.
DDL ELECTRONICS, INC.
September 29, 1997 /s/ Richard K. Vitelle
_________________________________ ___________________________________
Date Richard K. Vitelle
Vice President - Finance
(Principal Financial Officer)
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
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From: DDL Electronics, Inc. Contact: Rick Vitelle
2151 Anchor Court Chief Financial Officer
Newbury Park, California 91320 (805) 376-9415, ext. 142
DDL FILES LAWSUIT AGAINST CENTURY ELECTRONICS
MANUFACTURING OVER BREACH OF FINANCING AGREEMENT
NEWBURY PARK, CA, September 26, 1997 -- DDL Electronics, Inc. (NYSE:DDL)
announced today that it filed a lawsuit against Century Electronics
Manufacturing, Inc. over Century's breach of a financing agreement entered
into in May 1997.
Under the agreement, Century agreed to provide a loan to DDL of up to
$3.3 million by June 1, 1997 for the retirement of certain short-term debt of
DDL. However, such financing was not made available by Century. As a result,
on June 30, 1997 DDL obtained alternate financing from Thomas M. Wheeler, a
private investor (as previously announced), which enabled it to repay its
short-term debt. Also on June 30, DDL notified Century that its failure to
provide a loan of $3.3 million to DDL constituted a material breach of the
agreement. The previously announced merger between DDL and Century, which was
contingent on Century's performance under the financing agreement, was not
consummated.
DDL is an independent provider of electronic manufacturing services
("EMS") for electronic equipment manufacturers. DDL also manufactures printed
circuit boards ("PCBs") for use primarily in the computer, communications and
instrumentation industries. Its EMS facilities are located in Southern
California and in Northern Ireland, and its PCB facilities are located in
Northern Ireland.
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