<PAGE>
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): August 11, 1998
ERLY Industries Inc.
(Exact name of registrant as specified in its charter)
California
(State or other jurisdiction of incorporation)
1-7894 95-2312900
(Commission File Number) (I.R.S. Employer
Identification No.)
10990 Wilshire Boulevard, #1800
Los Angeles, California 90024-3955
(Address of Principal (Zip Code)
Executive Offices)
(213) 879-1480
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
Chapter 11 Filing By Subsidiary of Company
------------------------------------------
American Rice, Inc. ("ARI"), a subsidiary of ERLY Industries Inc.
("ERLY"), filed a Chapter 11 bankruptcy petition on August 11, 1998.
ERLY owns 81% of the voting rights of ARI. On August 12, 1998,
ERLY issued a press release reporting ARI's Chapter 11 filing.
The information contained in such press release is attached hereto
as Exhibit 99.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated August 12, 1998
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 hereunto duly authorized.
Date: September 8, 1998 ERLY INDUSTRIES INC.
--------------------
(Registrant)
By: /s/ Richard N. McCombs
----------------------
Vice President and
Chief Financial Officer
FOR IMMEDIATE RELEASE
For Further Information:
Gerald D. Murphy
Chairman, Chief Executive Officer
(213) 879-1480
or
Richard N. McCombs
Vice President
(281) 272-8800
ERLY ANNOUNCES ARI RESTRUCTURING, FIRE-TROL DIVISION SALE
LOS ANGELES, CALIFORNIA, August 12, 1998 --- ERLY Industries Inc. ("ERLY"),
which owns 81% of American Rice, Inc. ("ARI") said that in order to complete
ARI's previously announced financial restructuring more efficiently, ARI
filed today to reorganize under Chapter 11 of the bankruptcy code. ERLY
was not part of this filing. ARI has been pursuing an out-of-court financial
restructuring since its previously announced defaults on its bank debt and
13% Mortgage Notes due 2002 ("Notes"). The Trustee for the Notes has given
notice of an auction sale of ERLY's ARI stock, which was pledged to secure
the Notes. As part of the filing, ARI said it will sell its olive business,
pending court approval, and obtain approximately $45 million.
In an unrelated transaction, ERLY completed a profitable, cash sale of its
Chemonics Industries Fire-Trol Division, maker of wild fire retardants,
to a private party on August 7th for approximately $10 million. The
company stated that this sale was taken to resolve certain difficulties,
improve liquidity and allow the company to improve its current fiscal
performance.
ERLY is listed under the symbol "ERLYE" on the NASDAQ Stock Market.
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995: Any statements set forth above that are not historical facts
are forward-looking statements that involve risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. Potential risks and uncertainties include
but are not limited to such factors as product demand and development,
ability to maintain customer relationships, technological advancements,
impact of competitive products and pricing, growth in targeted markets,
risk of foreign operations, and other information detailed from time to
time in the Company's Securities and Exchange Commission filings.
