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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): April 20, 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
April 20, 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: s/Patrick D. Reddy
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Patrick D. Reddy,
Vice President
Date: April 20, 1999
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EXHIBIT INDEX
Item No.
99.1 Press release of American Banknote Corporation dated April 20, 1999.
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Exhibit 99.1
American Banknote Corporation
410 Park Avenue
New York, NY 10022-4407
Contact: Jean Marie Young
Director Investor Relations
(212) 593-5700
FOR IMMEDIATE RELEASE
AMERICAN BANKNOTE CORPORATION ANNOUNCES
DELAY IN FILING FORM 10-K
NEW YORK, April 20, 1999 American Banknote Corporation (NYSE:ABN) announced
today that the filing of its Annual Report on Form 10-K for the year ended
December 31, 1998 has been delayed.
The Company believes that its financial statements for the years ended
December 31, 1997 and December 31, 1996, as well as the interim financial
statements for each of the first three quarters of 1998, will require
restatement if the financial statements of its former subsidiary, American
Bank Note Holographics, Inc. are restated for the same periods.
The Company also reported that its subsidiaries are currently in negotiation
with their lenders in Australia and France to waive or amend certain financial
covenants of their respective loan agreements because the subsidiaries are
currently not in compliance with such covenants, although each is current on
all of its debt service requirements.
Additionally, the Company reported that its Australian subsidiary has retained
an investment advisor to assist it in the sale of its security printing
solutions business with the expected proceeds to be used to reduce debt in
Australia. It is anticipated that a sale could be concluded by the third
quarter of this year.
The Company's domestic subsidiary's existing revolving credit agreement
matures on April 30, 1999. The subsidiary is presently negotiating a new
credit facility with another financial institution.
The Company also reported that it has retained The Blackstone Group to explore
strategic alternatives with respect to improving its capital structure,
including a debt restructuring and/or a sale of certain assets to reduce its
debt. The recent currency devaluation of the real in Brazil has adversely
affected the amount of dividends available in U.S. dollars to the Company
from its Brazilian subsidiary. In addition, the previously announced
restructuring of the Company's domestic printing subsidiary has
(more)
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reduced cash flow available for dividends to the Company from that subsidiary.
These events may have an adverse affect on the Company's ability to meet all
of the required interest payments due June 1, 1999 on its outstanding debt
securities.
There can be no assurance that the Company's subsidiaries will be able to
execute amendments or waivers to the loan agreements or a new credit agreement
or finalize a sale of the security printing solutions business in Australia.
In addition, there can be no assurance that the Company will be able to
improve its capital structure through a debt restructuring or asset sale.
The Company has also disclosed that the Securities & Exchange Commission has
initiated a formal investigation involving the Company that appears to relate
to the revenue recognition issues involving its former subsidiary, American
Bank Note Holographics, Inc. (NYSE:ABH). The Company is cooperating with the
investigation.
Morris Weissman, Chairman and Chief Executive Officer of American Banknote
Corporation, commented, "We believe that the actions being taken by the
Company and our subsidiaries will significantly improve the Company's and its
subsidiaries' capital structures. This will allow the Company to employ its
resources to grow its business and realize the significant growth
opportunities available in its markets. Generally speaking, our operating
businesses are performing well and certain products continue to achieve
excellent growth."
Weissman added, "The recent acquisition of Transtex in Argentina solidifies
our transaction card business in South America, and we are looking to expand
our card business into Asia as well. The outsourcing opportunities continue
in many of our markets and we've had some recent successes in both card and
document personalization outsourcing."
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-look 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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