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OMB APPROVAL
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OMB Number 3235-0287
Expires: December 31, 2001
Estimated average burden
hours per response ....... 0.5
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
(Print or Type Response)
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1. Name and Address of Reporting Person(*)
General Electric Capital Corporation
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(Last) (First) (Middle)
260 Long Ridge Road
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(Street)
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(City) (State) (Zip)
Stamford Connecticut 06927
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2. Issuer Name and Ticker or Trading Symbol
Krause's Furniture, Inc. (SOFA)
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
May/2000
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5. If Amendment, Date of Original (Month/Year)
September/1996
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6. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
[ ] Director [ X ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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7. Individual or Joint/Group Filing
(Check Applicable Line)
[ X ] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly
* If the form is filed by more than one reporting person, see Instruction
4(b)(v).
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
9. 10.
Number Owner-
of ship
2. Deriv- Form of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
or Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Series A *see By GE
Convertible note Equity,
Preferred Stock $50 1/14/00 P 20,000 1/14/00 Common Stock 909,091 below 20,000 (I) which
is a
wholly-
owned
subsidiary
of the
Reporting
Person
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Series A
Convertible **see
Preferred note
Stock $50 5/5/00 P 21,615 5/5/00 Common Stock 982,500 below 21,615 (D)
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Warrants ***see
to Purchase note
Common Stock nominal 4/01/00 P 1 4/1/00 Common Stock 769,231 below 1 (D)
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</TABLE>
Explanation of Responses:
* Issued in connection with GE Capital Equity Investments, Inc.'s ("GE
Equity") acquisition of 20,000 shares of Series A Convertible
Preferred Stock, par value $0.001 per share ("Preferred Stock"), of
the Issuer at $50 per share.
** Issued in connection with a letter agreement dated as of May 5, 2000,
pursuant to which the Reporting Person agrees to receive 21,615
shares of the Preferred Stock in lieu of cash interest in the amount
of $1,080,736.59 accruing on all of the notes executed by the Issuer
in favor of the Reporting Person under a Supplemental Securities
Purchase Agreement, without separate consideration.
*** Issued in connection with the 9.5% subordinated notes of the Company
issued in an original aggregate principal amount of $5.0 million as a
result of certain performance tests not being met.
/s/ Michael E. Pralle June 9, 2000
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(***)Signature of Reporting Person Date
Michael E. Pralle, Vice President
General Electric Capital Corporation
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, see Instruction 6 for procedure.
Potential persons who are to respond to the collection of information
contained in this form are not required to respond unless the form displays
a currently valid OMB Number.
