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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 (Date of Earliest Event Reported): January 25, 1999
AMERICAN BANKNOTE CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
1-3410 13-0460520
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(Commission File Number) (I.R.S. Employer Identification No.)
410 PARK AVENUE, NEW YORK, N.Y. 10022-4407
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(Address of Principal Executive Office) (Zip Code)
(212) 593-5700
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events
The information set forth in the press release issued by American Banknote
Corporation, attached hereto as Exhibit 99.1, is incorporated herein by
reference.
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits
(c) Exhibits
99.1 Press release of American Banknote Corporation dated January 25,
1999.
SIGNATURE
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.
AMERICAN BANKNOTE CORPORATION
By: //Patrick D. Reddy
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Patrick D. Reddy,
Vice President and
Assistant Secretary
Date: January 25, 1999
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EXHIBIT INDEX
Item No.
99.1 Press release of American Banknote Corporation dated January 25, 1999.
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EXHIBIT 99.1
American Banknote Corporation
410 Park Avenue
New York, New York 10022-4407
Contact: Jean Marie Young
Director - Investor Relations
(212) 593-5700
FOR IMMEDIATE RELEASE
AMERICAN BANKNOTE CORPORATION
TO RESTATE FINANCIAL STATEMENTS
RELATING TO ITS FORMER HOLOGRAPHIC SUBSIDIARY
NEW YORK, January 25, 1999 - American Banknote Corporation (NYSE:ABN) announced
today that its former wholly-owned subsidiary, American Bank Note Holographics
(NYSE:ABH), which was sold effective July 20, 1998 in a public offering made the
following announcement:
"American Bank Note Holographics (NYSE:ABH) announced today that based
upon currently available information, the Company expects that revenues
and net income for the year ended December 31, 1998 will be
substantially lower than that for the year ended December 31, 1997, and
that the Company's interim financial statements for each of the first
three quarters of 1998 will require restatement. The Company also
currently believes that net income of the Company has been over-stated
for each of the years ended December 31, 1997 and December 31, 1996 by
approximately 10%. Accordingly, the Company's financial statements as
of December 31, 1997 and 1996 and for each of the three years in the
period ended December 31, 1997 and the related Report of Independent
Auditors should no longer be relied upon.
The previously announced investigation by the Company's Audit Committee
is continuing.
American Bank Note Holographics also announced today that several
class-action lawsuits have been commenced on behalf of purchasers of
the common stock of the Company during certain stated periods from
mid-July 1998 through Mid-January 1999. The lawsuits allege violations
of the federal securities laws and name as defendants the Company and
certain of its officers and directors. The lawsuits seek to recover
damages on behalf of all purchasers of the Company's stock during the
class periods stated in each complaint. The lawsuits each refer to the
Company's January 19, 1999 public announcement that the Company's Audit
Committee has commenced the investigation into certain revenue
recognition issues. The Company is reviewing the lawsuits and intends
to respond to the lawsuits in a timely manner."
(more)
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American Banknote Corporation believes that based upon the above, any
restatement of the Holographics results would result in a reduction in operating
income in 1996, 1997 and 1998 for American Banknote Corporation. On a cumulative
basis, the three-year restatement would be offset by a corresponding increase in
the Gain on sale of subsidiary in the 1998 third quarter.
Accordingly, American Banknote Corporation's financial statements as of December
31, 1997 and 1996 and for each of the three years in the period ended December
31, 1997 and the related Report of Independent Auditors should no longer be
relied upon.
American Banknote Corporation is a leading global full-service provider of
secure transaction solutions in carefully selected markets along three major
product groups: Transaction Cards & Systems, Printing Services & Document
Management, and Security Printing Solutions. A combined strategy of operating
along product lines and constant expansion of transaction activities worldwide
reflects the rapidly changing field of electronic commerce.
Statements about future results made in this release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform act of 1995. These statements are based on current
expectations and the current economic environment. The Company cautions that
these statements are not guarantees of future performance. They involve a number
of risks and uncertainties that are difficult to predict. Actual results could
differ materially from those expressed or implied in the forward-looking
statements. Important assumptions and other important factors that could cause
actual results to differ materially from those in the forward-looking statements
are specified in the Company's Annual Report on Form 10-K and quarterly reports
on Form 10-Q on file with the Securities and Exchange Commission.
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