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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
December 11, 1995
Date of report (Date of earliest event reported)
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WEDGESTONE FINANCIAL
(Exact name of registrant as specified in its charter)
Commission File Number: 1-8984
MASSACHUSETTS 04-26950000
State or other jurisdiction of I.R.S. Employer Identification
incorporation or organization Number
5200 N. Irwindale Avenue, Suite 168, Irwindale, California 91760
Address of principal executive offices
(818) 338-3555
Registrant's Telephone
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ITEM 5. OTHER EVENTS
Attached is a press release issued December 11, 1995 which relates to recent
events concerning Wedgestone's loss on a loan to Genesis Plastics, Inc., and
Wedgestone's calculation of Deferred Tax Benefits.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits:
1. Wedgestone Financial news release dated December 11, 1995.
SUMMARY: Wedgestone Financial
WEDGESTONE FINANCIAL
ANNOUNCES LOSS ON GENESIS LOAN
AND DEFERRED TAX BENEFIT
CONTACT: JEFFREY GOLDSTEIN
Wedgestone Financial
(212) 980-3883
FOR RELEASE AT 5:00 PM E.S.T. ON MONDAY, DECEMBER 11, 1995
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December 11, 1995, Irwindale, California - Wedgestone Financial
(OTC-WDGF) today announced that it will incur a loss on a loan to Genesis
Plastics, Inc. Wedgestone had made the loan to Genesis, an unrelated plastics
recycler, in 1992. Genesis, had previously filed for protection under Chapter XI
of the United States Bankruptcy Code on August 24, 1994 and had been
unsuccessful in its efforts to secure a buyer for its Charleroi, Pennsylvania
recycling facility. Wedgestone held a senior security interest in the inventory,
receivables and certain equipment of Genesis. On November 29, 1995, in
accordance with its rights under the loan agreement with Genesis, Wedgestone
consented to the liquidation of the Genesis' inventory and equipment through a
public auction. As a result of this action, Wedgestone will record a one time
loss of approximately $700,000 in December 1995.
In an unrelated matter, Wedgestone also announced today that it will
record a substantial deferred tax benefit in December 1995. This benefit derives
from the continued favorable sales and earnings performance of the Company's
Automotive Products business segment and management's estimate of the Company's
future ability to utilize its net operating loss carryforward for federal income
taxes over the next three years.. The Company stated that, when taken together,
the sum of these two events will not have an adverse effect on 1995 earnings.
Wedgestone is primarily engaged in the business of manufacturing
automotive parts for the light duty truck aftermarket. It manufactures its
products in Irwindale, California; St. James, Minnesota and Pelham, Georgia. The
Company distributes its products through its national distribution system under
the trade names Fey, Tuff Bar, Hercules and Westin and continues to actively
seek acquisitions to augment its internal growth.
