<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
********************************************************************************
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Security Exchange Act of 1934
Date of Report (Date of earliest event reported) April 22, 1996
-------------------
SMITH ENVIRONMENTAL TECHNOLOGIES CORPORATION
--------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 0-14992 38-2294876
(State of other jurisdiction of (Commision File (IRS Employer
incorporated organization) Number) identification No.)
Bayview Corporate Center
3501 Jamboree Road, Suite 550
Newport Beach, CA 92660
(address of principal executive offices)
Registrant's telephone number, including area code: (714) 737-7900
-------------------
<PAGE> 2
Item 5. Other Events
On October 18, 1995, Smith Environmental Technologies
Corporation (The "Company") executed a Loan and Security Agreement
(Agreement) by and among Smith Environmental Technologies Corporation
("Smith"), BCM Engineers Inc., a Pennsylvania corporation (BCM), and
Riedel Environmental Services, Inc. (RES), as Borrowers and Chemical
Bank and BOT Financial Corporation as lenders. The Company reported in
a news release on April 10, 1996 that it has advised its senior lenders
that it is not in compliance with certain financial covenants in the
Agreement due to the operating results for the second fiscal quarter
ending March 31, 1996. The Company is in discussions with its senior
lenders regarding possible waiver or modification of the agreement.
Item 7. Financial Statements and Exhibits
(c) None
<PAGE> 3
SIGNATURE
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.
SMITH ENVIRONMENTAL
TECHNOLOGIES CORPORATION
By: /s/ William T. Campbell
-----------------------
William T. Campbell
Vice President/Finance
April 22, 1996
