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 11, 1996
CINCINNATI MICROWAVE, INC.
(Exact name of registrant as specified in its charter)
Ohio 0-13136 31-0903863
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
One Microwave Plaza, Cincinnati, Ohio 45249-9502
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (513) 489-5400
(Former name, former address and former fiscal year, if changed since last
report).
Item 5. Other Events
By letter dated January 2, 1996, The Huntington National Bank (the
"Bank"), the Company's lender under its credit facility, notified the
Company that it was in default of the terms of the Loan and Security
Agreement dated as of May 27, 1994, as amended (the "Loan Agreement"),
because the Company had failed to comply with the covenant in the Loan
Agreement which provided that the Company would incur no losses from
operations in any fiscal quarter in any fiscal year, except losses from
operations which do not exceed in the aggregate the sum of $3,000,000
during the first and second fiscal quarters in 1996.
At the present time, the Company believes that the Bank is electing to
continue to make advances to the Company under the credit facility
notwithstanding the "Event of Default" under the Loan Agreement;
however, the Bank has reduced the revolving credit facility from $5.0
million to $3.0 million. This reduction has caused the Company to have
less cash than previously anticipated and heightened the Company's need to
manage cash balances very carefully, while converting its higher than
normal levels of inventory and accounts receivable into cash
as expeditiously as possible. There can be no assurances that the Bank's
election will continue because the Bank has not waived the default and has
reserved all of its rights and remedies under the Loan Agreement, related
loan documents and applicable law.
The Company is currently exploring the possibility of obtaining
additionally financing from lenders other than the Bank to supplement
and/or replace the Bank credit facility. The Company is currently in
communication with its key suppliers and vendors in order to maintain
good relations as it seeks additional financing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Cincinnati Microwave, Inc. has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
January 11, 1996
CINCINNATI MICROWAVE, INC.
By
Elaine M. Bacon
Assistant Corporate Secretary
