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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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): JULY 25, 1997 (JULY 18, 1997)
NU-TECH BIO-MED, INC.
(Exact Name of Registrant as Specified in Charter)
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DELAWARE 0-11772 25-1411971
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
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55 ACCESS ROAD
WARWICK, RHODE ISLAND 02886
(Address of Principal Executive Offices) (Zip Code)
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Registrant's telephone number, including area code: (401) 732-6520
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INDEX TO CURRENT REPORT ON FORM 8-K
OF NU-TECH BIO-MED, INC.
JULY 25, 1997
ITEM PAGE
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ITEM 5. OTHER EVENTS 3
SIGNATURES 5
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ITEM 5. OTHER EVENTS.
On November 8, 1996, the Registrant joined with Physicians
Clinical Laboratory, Inc., a Delaware corporation ("PCL") in submitting a plan
of reorganization of PCL (the "PCL Plan") under Chapter 11 of the United States
Bankruptcy Code ("Chapter 11"), whereby the Registrant would acquire a 52.6%
interest in PCL, which is currently operating under Chapter 11. The PCL Plan was
confirmed by the United States Bankruptcy Court, Central District of California
(Case No. SV96-23185-GM) (the "Bankruptcy Court") on April 23, 1997. The PCL
Plan as confirmed required that certain conditions be satisfied or waived by
July 22, 1997.
In April and June of 1997, PCL received separate investigatory
subpoenas to furnish certain documents to the United States Department of
Defense and the United States Department of Health and Human Services with
respect to PCL's Civilian Health and Medical Program of Uniformed Services
billing practices. PCL has been advised that its billing practices are the
subject of these investigations. Due to PCL's continued cooperation and
negotiations with these government agencies, on July 24, 1997, the Bankruptcy
Court, on stipulation of PCL, the Registrant and the creditors of PCL, extended
the date that such conditions be satisfied or waived for 60 days to September
19, 1997 and stated that the terms and conditions of the PCL Plan shall continue
in full force and effect.
On July 18, 1997, PCL entered into a letter agreement with the
United States Department of Justice in connection with such billing practices
claims. The letter agreement is intended, subject to final documentation (as
completed, the "Settlement Agreement"), to dispose of the claims on
substantially the following terms:
1. PCL will pay (i) $200,000 upon execution of the Settlement
Agreement and (ii) $1,800,000 in principal plus interest
calculated at the Treasury Bill rate, payable in equal
quarterly installments each year for six years;
2. PCL will enter into a five-year corporate integrity agreement
with the Office of the Inspector General of the U.S.
Department of Heath and Human Services, pursuant to which PCL
will, among other requirements, continually be monitored by
internal corporate compliance officers and provide proper
training for its billing personnel;
3. PCL will be released from civil and criminal liability under
the False Clams Act and common law causes of action in
connection with their billing practices from January 1, 1992
to July 18, 1997;
4. The amounts owed to the United States will not be
dischargeable in any bankruptcy; and
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5. If PCL defaults on any of its obligations under the Settlement
Agreement, all amounts owed will be immediately due, all
releases will be void and PCL may be excluded from
participation in Medicare and Medicaid.
PCL has no reason to believe that the Settlement Agreement
will not be entered into as contemplated. The Settlement Agreement, however, may
contain additional or different terms from those set forth in the July 18, 1997
letter agreement.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.
NU-TECH BIO-MED, INC.
By: /s/ J. Marvin Feigenbaum
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Name: J. Marvin Feigenbaum
Title: Chairman of the Board, President, Chief
Executive and Chief Financial Officer
Date: July 25, 1997
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