FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: July 8, 1997
(Date of earliest event reported)
RYMER FOODS INC.
(Exact name of registrant as specified in its charter)
Delaware 36-1343930
(State of Incorporation or Organization) (I.R.S. Employer
Identification No.)
4600 S. Packers Avenue, Suite 400, Chicago, Illinois 60609
(Address of principal executive offices) (Zip Code)
(773) 927-7777
(Registrant's telephone no., including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
Item 3. Bankruptcy or Receivership
On July 8, 1997, Rymer Foods Inc. filed a voluntary petition for
relief under Chapter 11 of Title 11 of the United States Bankruptcy
Code. Along with the petition, Rymer also filed its Prepackaged Plan of
Reorganization. The petition was filed in the United States Bankruptcy
Court for the Northern District of Illinois, Eastern Division as Case
No. 97B20714 and assigned to the Honorable Jack B. Schmetterer.
Under the Prepackaged Plan, Rymer will implement a 25 into 1
reverse stock split and will issue up to 4,300,000 shares of new common
stock to the holders of its senior notes and other unsecured creditors,
its stockholders, and members of its senior management; and all senior
notes will be eliminated. Immediately following consummation of the
Prepackaged Plan, prior holders of the senior notes and other unsecured
creditors will own 80% of the issued and outstanding new common stock,
the prior stockholders will own 10%, and Rymer senior management will
own 10% of Rymer. Rymer expects to obtain confirmation of the
Prepackaged Plan and to complete the previously announced financial
restructuring in late August, 1997.
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The existing directors and officers of Rymer, including Edward
Hebert, a newly elected director, will continue to conduct Rymer's
business, control its assets, and process confirmation of the
Prepackaged Plan.
In furtherance of the Prepackaged Plan, LaSalle National Bank has
extended Rymer's credit facility through and including August 31, 1997.
Rymer Foods Inc. is the holding company for Rymer Meat Inc. Rymer
Meat is not a party to the voluntary petition and will not be affected
by the filing or the Prepackaged Plan.
Item 7.(c) Exhibits
99.1 Rymer Foods Inc. News Release dated July 8, 1997.
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.
RYMER FOODS INC.
Date: July 21, 1997 By: /s/ Edward M. Hebert
Edward M. Hebert
Senior Vice President,
Chief Financial Officer
and Treasurer
99.1 Rymer Foods Inc. News Release dated July 8, 1997:
RYMER FOODS INC. PROCEEDS WITH PREPACKAGED PLAN OF REORGANIZATION
July 8, 1997
FOR IMMEDIATE RELEASE
Chicago, IL - Today Rymer Foods Inc. (OTCBB: RYMR) announced that
it received the requisite approval of its senior noteholders and
shareholders to confirm its proposed prepackaged Chapter 11 bankruptcy
plan. The senior note exchange offer made by Rymer as an alternative
financial restructuring plan did not receive the necessary noteholder
response or shareholder vote to be implemented, although Rymer received
strong support from noteholders and shareholders who had acted on the
proposal.
<PAGE>
Today Rymer filed a voluntary Chapter 11 case in the United States
Bankruptcy Court for the Northern District of Illinois to implement the
Prepackaged Plan. Rymer's main operating subsidiary, Rymer Meat Inc.,
is not a party to the Chapter 11 case. Its operations will not be
affected by the legal proceeding.
Under the Prepackaged Plan, Rymer will implement a 25 into 1
reverse stock split and will issue up to 4,300,000 shares of new common
stock, and all senior notes will be eliminated. Immediately following
consummation of the Prepackaged Plan, prior holders of the senior notes
will own 80% of the issued and outstanding new common stock, the prior
shareholders will own 10%, and Rymer senior management will own the
remaining 10% of the Company. Rymer expects to obtain confirmation of
the Prepackaged Plan and to complete the previously announced financial
restructuring in late August, 1997.
"I am pleased with the support expressed by our noteholders and
shareholders," stated Ed Schenk, Chairman and CEO of Rymer. "We are now
in a position to complete the balance sheet restructuring that we began
about 18 months ago. The strengthened balance sheet will enable Rymer
to proceed with its business plan with confidence."
At the annual meeting of stockholders held today, Edward M. Hebert,
Vice President and Chief Financial Officer of Rymer was elected to the
Board of Directors.
Rymer Foods is the holding company for Rymer Meat, a Chicago-based por-
tion-control meat company which provides frozen, pre-seasoned meat and
tailored programs to national mid-scale family restaurant chains and
institutional foodservice providers.
