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): February 14, 1997
Allis-Chalmers Corporation
(Exact name of registrant as specified in its charter)
Wisconsin 1-2199 39-0126090
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
Box 512, Milwaukee, Wisconsin 53201-0512
(Address of principal executive offices including zip code)
(414) 475-2000
(Registrant's telephone number)
<PAGE>
Item 5. Other Events.
Allis-Chalmers Corporation today announced that it has filed with
the Pension Benefit Guaranty Corporation ("PBGC") to initiate the
termination of the Allis-Chalmers Consolidated Pension Plan. In
accordance with PBGC requirements, notices have been mailed to the almost
9,000 Plan participants. The Plan is significantly underfunded
(previously reported as $11.9 million as of December 31, 1995 based on the
assumptions used by the Plan's actuaries), and it is anticipated that the
PBGC will assume the responsibilities of the Plan. The company has failed
to make required quarterly contributions starting in April 1996, resulting
previously in the filing of a lien by the PBGC against the company. The
consequence of these circumstances is a liability to the PBGC well in
excess of the current net worth of the company. The company has been
engaged in ongoing discussions with the PBGC concerning this liability.
Although it is not possible to predict the outcome of such discussions,
the company's options include seeking protection from its creditors by
commencing voluntary bankruptcy proceedings under the federal bankruptcy
laws.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits. The following exhibit is being filed herewith:
(99.1) Press Release, dated February 14, 1997.
<PAGE>
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 thereunto duly authorized.
Allis-Chalmers Corporation
(Registrant)
Date: February 14, 1997. By: /s/ William L. Vaitl
Secretary & Assistant Treasurer
<PAGE>
ALLIS-CHALMERS CORPORATION
EXHIBIT INDEX TO FORM 8-K
Exhibit
Page
(99.1) Press Release, dated February 14, 1997 5
Exhibit 99.1
Allis-Chalmers
Box 612
Milwaukee, Wisconsin 53201-0612 NEWS RELEASE
Allis-Chalmers Consolidated
Pension Plan Notice of
Intent to Terminate
William L. Vaitl RELEASE: Immediate
414/475-3670 February 14, 1997
Milwaukee, WI -- Allis-Chalmers Corporation today announced that
it has filed with the Pension Benefit Guaranty Corporation ("PBGC") to
initiate the termination of the Allis-Chalmers Consolidated Pension Plan.
In accordance with PBGC requirements, notices have been mailed to the
almost 9,000 Plan participants. The Plan is significantly underfunded
(previously reported as $11.9 million as of December 31, 1995 based on the
assumptions used by the Plan's actuaries), and it is anticipated that the
PBGC will assume the responsibilities of the Plan. The company has failed
to make required quarterly contributions starting in April 1996, resulting
previously in the filing of a lien by the PBGC against the company. The
consequence of these circumstances is a liability to the PBGC well in
excess of the current net worth of the company. The company has been
engaged in ongoing discussions with the PBGC concerning this liability.
Although it is not possible to predict the outcome of such discussions,
the company's options include seeking protection from its creditors by
commencing voluntary bankruptcy proceedings under the federal bankruptcy
laws.
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