UNITED STATES
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 7, 2000
Applied Magnetics Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-6635 95-1950506
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
75 Robin Hill Road
Goleta, California 93117
(Address of principal executive office)(Zip code)
Registrant's telephone number, including area code: (805) 681-2837
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Item 3. Bankruptcy or Receivership.
On January 7, 2000, Applied Magnetics Corporation (the "Company") filed
a voluntary petition for reorganization under Chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the Central District
of California - Santa Barbara Division (Case No. ND00-1066-RR). In connection
with the Chapter 11 filing, the Company issued a press release (the "Press
Release"). A copy of the Press Release is filed as Exhibit 99.1 hereto.
The Company expects to propose a plan of reorganization in the near
future. The plan involves the creation of a new manufacturing operation focused
on providing volume production capabilities of micro-electro mechanical systems
for design houses and consumers (the "MEMs Business"). Under the proposed plan
as currently contemplated, all common stock, warrants and options outstanding on
the date of the filing would be canceled and no stockholder, warrant holder or
option holder of the Company would receive any distribution with respect to the
common stock, warrants or options outstanding on the date of the filing.
The Company is not current in its Securities Exchange Act of 1934
periodic reporting requirements; the Company has not filed its Annual Report on
Form 10-K for the year ended October 2, 1999 or its Quarterly Reports on Form
10-Q for the quarters ended January 2, 2000 and April 2, 2000.
There is no assurance that the plan of reorganization expected to be
filed will be filed, or if filed, that it will not be amended, or if filed, that
it will be confirmed, or that the MEMs Business contemplated by the proposed
plan, if commenced, will be successful.
Item 7. Financial Statements and Exhibits.
99.1 News Release issued January 7, 2000 by Applied Magnetics
Corporation
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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.
Date: July 31, 2000 APPLIED MAGNETICS CORPORATION
By: /s/ John Foster
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Its: Chief Operating Officer
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Business Wire January 7, 2000, Friday
Copyright 2000 Business Wire, Inc.
Business Wire
January 7, 2000, Friday
Applied Magnetics Corporation (NYSE:APM) today announced that it has
filed a voluntary petition for protection under Chapter 11 of the Federal
Bankruptcy Code with the United States Bankruptcy Court in Santa Barbara.
Operations at the Company's Goleta facility have been discontinued and
most of the employees there have been laid off. The Company expects to continue
limited operations in Malaysia and Korea for the purpose of fulfilling existing
customer commitments. The Company will continue to seek new financing in an
effort to resume full operations, but there is no assurance its efforts will be
successful.
"In the past two years, magnetic recording head manufacturers have
suffered from excess capacity and slowing demand from the hard disk drive
industry. These market conditions have severely hampered the Company's efforts
in qualifying its GMR technology on new products and have prevented the Company
from achieving its planned sales volume," said Craig Crisman, Chairman and CEO
of the Company.
Applied Magnetics Corporation is an independent manufacturer of
magnetic recording heads, head-gimbal assemblies ("HGAs") and headstack
assemblies ("HSAs") for computer hard disk drives. Founded in 1957, Applied
Magnetics is the oldest independent U.S.-based supplier of disk heads to the
merchant market. The Company has offshore facilities in Malaysia, Korea and
China.
Forward-looking statements included in this release are based on
estimates and assumptions made by management of the Company, which, although
believed to be reasonable, are inherently uncertain and difficult to predict.
Therefore, undue reliance should not be placed upon such estimates. Such
statements are subject to certain risks and uncertainties inherent in the
Company's business that could cause actual results to differ materially from
those projected.
CONTACT: Applied Magnetics, Goleta
Craig D. Crisman, 805/683-5353
URL: http://www.businesswire.com
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