SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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) November 30, 1994
Lone Star Industries, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-06124 13-0982660
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
300 First Stamford Place, P. O. Box 120014, Stamford, CT 06912-0014
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 969-8600
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ITEM 5. OTHER EVENTS.
On November 30, 1994, Lone Star Industries, Inc. made public
disclosure of the following by a press release for immediate
release:
Stamford, Connecticut November 30, 1994 --- Lone Star
Industries, Inc. (LCE/NYSE) reported that on November
30, 1994, a verdict has been reached by the jury in the
case brought in the United States District Court for
the District of Maryland by Lone Star and certain of
its affiliates against Lafarge Corporation and Lafarge
Canada Inc. Lone Star had claimed that the cement
purchased from a Lafarge subsidiary caused the failure
of its crossties and was seeking from Lafarge the
damages from such failure. As a result of the failure
of a portion of such crossties, Lone Star had been sued
by the railroads which had purchased the crossties.
Lone Star, in its Chapter 11 proceedings, had settled
the claims of the railroads for approximately
$66,600,000 consisting of $57,200,000 in allowed
unsecured claims and $9,400,000 in cash. As part of
the emergence from its Chapter 11 proceedings, Lone
Star assigned the right to any recovery in this
litigation to Rosebud Holdings, a wholly-owned
liquidating subsidiary. Rosebud is the issuer of three
year 10% secured Asset Proceed Notes, of which
approximately $106 million are presently outstanding.
The jury found Lone Star was entitled to recovery from
Lafarge on its claim of breach of express warranty and
awarded Lone Star $8,391,483. The amount of this
judgement could be reduced by the application of a
statute of limitations to Lone Star's claim. Such
matter will be considered by the trial court judge in
early January 1995, together with Lone Star's pending
claims under a Massachusetts statute governing unfair
trade practices.
Lone Star Industries, Inc. is a leading producer of
cement, ready-mixed concrete, sand and gravel, crushed
stone, and other construction materials.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, Lone Star Industries, Inc. has duly caused this report
to be signed on its behalf by the undersigned hereunto duly
authorized.
LONE STAR INDUSTRIES, INC.
By: /s/ John S. Johnson
John S. Johnson
Vice President
Date: December 2, 1994
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