U.S. 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
1/12/98
Commission File Number: 1-6762
KILLEARN PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
Florida 59-1095497
(State of Incorporation) (IRS Employer Identification No.)
385 Country Club Drive
Stockbridge, GA 30281
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code:
(770) 389-2020
Item 5 Other Events
The Company's liquidity position has been adversely affected since the
filing of the last form 10-QSB, due primarily to the failure of
Proactive Technologies, Inc., the major shareholder of the Company, to
pay the past due interest and principal on notes and mortgages to the
Company. Proactive's Chairman and President was, until recently, the
Chairman and President of the Company. The past due amount totals
approximately $ 2.7 million as reported in the Company's last form 10-
QSB. In addition the Company's sales in the current quarter have
declined substantially.
The Company has made demand on Proactive Technologies, Inc., to pay the
three notes which are in default totaling $ 4,874,820.07, including past
due interest through December 31,1997. If payment is not received by
January 19,1998, the Company has instructed it's attorney to enforce the
Company's rights pursuant to the notes and related mortgages, by taking
appropriate action, including filing suit seeking damages and specific
performance.
At the request of the Company, J. T. Williams, Jr., a director of the
Company, loaned the Company approximately $ 406,000 for the Company to
pay past due obligations, in order to prevent liens from being filed
against the Company.
On December 29,1997, the Company received a letter from the Company's
primary lender, requiring the Company to repay a loan in the amount of
$2.4 million dollars, which was in default. J. T. Williams, Jr., a
director of the Company, purchased the loan from the lender. The loan
in still in default. Although management believes it can cure the
default, there is no assurance this can be accomplished.
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.
David K. Williams
/s/ David K. Williams
January 12, 1998
