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 2, 1996
SPEC'S MUSIC, INC.
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(Exact name of registrant as specified in its charter)
FLORIDA 0-14323 59-1362127
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
1666 N.W. 82ND AVENUE, MIAMI, FLORIDA 33131
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (305) 592-7288
N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On January 2, 1996, the Company's lender declared the Company to be in
default under its unsecured credit agreement due to the Company's failure to
meet the "fixed charge coverage ratio" and the "debt service coverage ratio" as
defined in the credit agreement. Although the Company has failed to meet these
financial covenants, it is continuing to make payments under the credit
agreement. The outstanding amount currently due under the credit line is
approximately $14,000,000.
As a result of the default, the Company's lender has demanded repayment
of all amounts due under the credit agreement. The Company has commenced
discussions with other prospective lenders about refinancing its credit line on
a secured basis. There can be no assurance, however, that the Company will
successfully refinance its credit line.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Company has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date: January 8, 1996 SPEC'S MUSIC, INC.
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(Registrant)
By: /S/ ANN S. LIEFF
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Ann S. Lieff
President
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