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: September 29, 1997
(Date of earliest event reported)
NATIONAL WESTERN LIFE INSURANCE COMPANY
(Exact Name of Registrant as Specified in Its Charter)
Colorado
(State or Other Jurisdiction of Incorporation)
2-17039 84-0467208
(Commission File Number) (I.R.S. Employer Identification Number)
850 East Anderson Lane, Austin, Texas 78752-1602
(Address of Principal Executive Offices and Zip Code)
(512) 836-1010
(Registrant's Telephone Number, Including Area Code)
Item 5. Other Events
National Western Life Insurance Company, Austin, Texas announced today
that the United States Bankruptcy Court, Southern District of Texas,
Houston, Texas, on September 29, 1997, entered an order approving claims
in the amount of $56,173,000 against The Westcap Corporation and its
wholly owned subsidiary Westcap Enterprises, Inc., both of Houston, Texas.
The claims were filed by the Board of Trustees of Community College
District No. 508, County of Cook, State of Illinois. The Westcap
Corporation and Westcap Enterprises, Inc. are considering an appeal of
this order.
While The Westcap Corporation is a wholly owned brokerage subsidiary of
National Western Life Insurance Company, National Western is not a party
to the order or the bankruptcy proceeding, and the order of the Bankruptcy
Court does not have any direct effect upon National Western. As
previously reported, effective July 17, 1995, The Westcap Corporation
discontinued all sales and trading activities in its Houston, Texas,
office, and in September 1995, Westcap approved a plan to close its
remaining sales offices and to cease all brokerage operations.
As previously reported, National Western's investment in Westcap was
written off during 1995. National Western made an additional $1,000,000
cash infusion to Westcap for operational expenses incurred during
Westcap's bankruptcy, with such cash infusion to be credited against any
future settlement or litigation recovery related to any Westcap alleged
claims against National Western. This funding was approved by the
Bankruptcy Court on February 21, 1997, and the funds were transferred by
National Western to Westcap on March 18, 1997.
As previously reported, National Western has agreed to participate in the
Westcap plan of reorganization by the contribution of $5,000,000 of cash
and $5,000,000 of income producing real estate properties in exchange for
a complete settlement and release of any claims by Westcap against
National Western and a continuing equity interest in the reorganized
entity. This reorganization plan is pending and subject to approval by
Westcap's creditors and the Bankruptcy Court. The Creditors' Committee,
the debtor Westcap, and National Western continue to discuss possible
settlement of all claims by the creditors of Westcap and the claims by
Westcap against National Western. No prediction can be made at this time
as to the outcome of such settlement discussions.
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.
National Western Life Insurance Company
(Registrant)
Date: October 6, 1997 By: /S/ Ross R. Moody
Ross R. Moody
President and
Chief Operating Officer
