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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 August 23, 1996
New Energy Company of Indiana Limited Partnership
(formerly, New Energy Company of Indiana)
(Exact name of registrant as specified in its charter)
Indiana 0-11431 52-1195762
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization File Number) Identification No.)
3201 West Calvert Street, South Bend, Indiana 46613
(Address of prinicpal executive offices)
(Zip Code)
219-233-3116
(Registrant's telephone number, including area code)
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Item 5. Other Events
Item 5. Other Events
New Energy Company of Indiana Limited Partnership (the "Company") filed
its June 30, 1996 Form 10-Q with the Securities and Exchange Commission on
August 20, 1996. In that report, the Company advised of a default under senior
secured indebtedness to the Department of Energy ("DOE") and the Business
Development Corporation of South Bend ("BDC") respecting the non-payment of
certain real property taxes due and payable on May 17, 1996, in the amount of
$879,421 (the "Unpaid Taxes"). As a result, the Company showed the debts of the
DOE and BDC as current liabilities.
On August 23, 1996, the Company entered into a loan and security
agreement (the "Loan Agreement") with Great American Insurance Company ("Great
American"). Great American, an affiliate of American Financial Group, Inc., is
also an entity related to Chiquita Brands International, Inc., a shareholder of
New Energy Corporation of Indiana, the general partner of the Company.
Great American extended a revolving working capital loan facility to
the Company through December 31, 1997 of up to $10 million, secured by the
Company's accounts receivable and inventory. The loan provides for interest at
three percent over the "prime rate" of interest as quoted daily in The Wall
Street Journal and includes other terms customary in the commercial loan market.
In connection with the Loan Agreement, the BDC has agreed not to
declare a default by the Company under the BDC's loan, as amended, because of
the Unpaid Taxes, unless they remain unpaid after November 11, 1996. In
addition, the Company believes that entering into the Loan Agreement has
satisfied the DOE's condition precedent for the continuation of a "standstill"
under the DOE loan agreement respecting the Unpaid Taxes.
The DOE and BDC agreed to a further suspension of the Company's
obligation to make debt service payments from October 1, 1996 through December
31, 1997, and under certain circumstances, through December 31, 1998. This
suspension is subject to, among other things, payment of the Unpaid Taxes in
November 1996. The suspension would also end for any month if the Company is
able to generate earnings and cash flow sufficient to repay the Great American
loan and have cash in excess of $4.8 million on deposit in its bank.
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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.
NEW ENERGY COMPANY OF INDIANA
LIMITED PARTNERSHIP
By: New Energy Corporation of Indiana,
General Partner
Dated September 5, 1996 By:___________________________________
Larry W.Singleton
President and Treasurer
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