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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): February 26, 1999
Recycling Industries, Inc.
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(Exact Name of Registrant as Specified in Charter)
Colorado 0-20179 84-1103445
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(State or Other Jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
9780 South Meridian Blvd., Suite 180 Englewood, Colorado 80112
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (303) 790-7372
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ITEM 3. BANKRUPTCY OR RECEIVERSHIP.
On February 26, 1999, Recycling Industries, Inc. (the "Company") issued the
attached press release announcing that it and 21 of its directly and/or
indirectly wholly-owned subsidiaries (the "Filing Subsidiaries") filed for
protection under Chapter 11 of the Federal Bankruptcy Code as promulgated
under the Bankruptcy Reform Act of 1978, as amended (the "Code"). Both the
Company and the Filing Subsidiaries filed for such protection in the United
States Bankruptcy Court, District of Colorado (the "Court"). The Company and
the Filing Subsidiaries are now operating as debtors in possession subject to
the supervision of the orders of the Court.
On March 2, 1999, the Court authorized the Company and Filing Subsidiaries,
on an interim basis, to obtain and incur post-petition financing and
post-petition indebtedness pursuant to a Post-Petition Credit Agreement dated
as of February 26, 1999. A final hearing regarding the post-petition
financing is set for March 23, 1999.
The Company also owns and/or controls interests in several non-operating,
dormant companies. These companies were formed in the normal course of
business, but do not currently have assets, liabilities and/or operations.
As a consequence, these subsidiaries did not file for protection under the
Code.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press Release of Registrant dated February 26, 1999.
2
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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.
Recycling Industries, Inc.
Dated: March 12, 1999 By: /s/ THOMAS J. WIENS
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Thomas J. Wiens
Chief Executive Officer and
Chairman
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EXHIBIT INDEX
Exhibit # Item
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99.1 Press Release
RECYCLING INDUSTRIES, INC. ANNOUNCES
CHAPTER 11 REORGANIZATION
(FEBRUARY 26, 1999) - ENGLEWOOD, COLORADO - Recycling Industries, Inc. today
announced it has filed for reorganization under Chapter 11 of the United
States bankruptcy code. This proceeding was filed in the U.S. Bankruptcy
Court for the District of Colorado. The Chapter 11 filing includes Recycling
Industries and all of its operating subsidiaries. This action was taken in
an effort to assure its creditors, employees, and customers that it will
continue operations while it completes its restructuring.
In connection with the reorganization proceedings, the Company's senior
lender will provide Recycling Industries a debtor-in-possession credit
facility. The Company expects that this new credit facility will enable the
Company to meet its current financial needs and provide the necessary time to
complete a longer term financial restructuring.
Recycling Industries, Inc. Chairman and CEO Thomas J. Wiens said, "Recycling
Industries, Inc. joins several other steel related companies that have filed
for Chapter 11 protection in the last several months. Record tonnage of
imported steel has damaged the US steel industry and the many suppliers to
the steel industry like Recycling Industries. The flood of imported
finished steel, helped cause the price for scrap metal to drop to 30-year
lows during the second half of 1998. In many of our markets, we saw prices
drop from $150 per ton to less than $85 per ton and volumes cut in half. I
am unaware of other industries that can remain untouched when foreign
companies dump government subsidized products into US markets. This
unprecedented drop in scrap prices and demand, and the resulting lack of
sufficient liquidity has made it difficult for Recycling Industries to
service its debt and fund ongoing operations. We have diligently examined
other courses of action, but have been left no other recourse."
"Market conditions have improved over the last 45 days, and it is our
intention to continue our efforts to restructure the Company's existing
indebtedness through discussions with our creditors under the protection of
the bankruptcy laws. Recycling Industries is committed to diligently
pursuing the Chapter 11 process to a successful conclusion and to emerge
expeditiously," Wiens said.
Mr. Wiens also announced that Raymond C. Lawhon would assume the position of
President of the Company. Mr. Wiens said, " As President of Recycling
Industries, Ray Lawhon will be
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responsible for financial and operational aspects of the Company. Restoring
the Company to operational health and profitability is the major objective of
management during these difficult market conditions. Mr. Lawhon is a seasoned
'hands on' professional that has worked in major private and publicly traded
companies."
Wiens added, " Recycling Industries is a business with good facilities, loyal
customers, a dedicated work force, and strong management. With improvements
in market conditions and the restructuring of our debt obligations, we
believe the company has an excellent chance of working through this process
quickly."
Recycling Industries, Inc. is a full-service metal recycling company
processing ferrous and non-ferrous metals. Based in Englewood, Colorado, the
Company currently owns and operates 42 metal collecting and processing
facilities in 12 states.
