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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13
or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): MAY 30, 1996
MARGO NURSERY FARMS, INC.
(Exact name of registrant as specified in this charter)
FLORIDA 0-15336 59-2807561
(State or other jurisdiction of (Commission File No.) (IRS Employer
of incorporation) Identification No.)
ROAD 690, KILOMETER 5.8 VEGA ALTA, PUERTO RICO 00692
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (787) 883-2570
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<PAGE>
ITEM 5. OTHER EVENTS
On May 30, 1996, Margo Nursery Farms, Inc. (The "Company") issued a press
release announcing that the Company, all related entities of the Company and
Michael J. Spector, the Chairman of the Board, Chief Executive Officer and major
stockholder of the Company (the "Margo Entities") had entered into a Settlement
Agreement with First Union National Bank of Florida ("First Union"). The
settlement agreement covers all claims brought by First Union against the Margo
Entities related to a loan facility obtained by the Margo Entities from
Southeast Bank, N.A. in 1988 and later acquired by First Union. The
Settlement Agreement also settles all counterclaims brought by the Margo
Entities against First Union related to First Union's efforts to collect such
loan.
The Settlement Agreement provides for a payment to First Union of
$5,625,000, of which $5,285,000 will be paid by Margo Entities and $340,000 will
be paid by Mr. Spector. The settlement payment being made by the Company,
excluding related costs, will result in a charge of approximately $308,000 (or
$0.16 per share) in the second quarter of 1996, after application of existing
reserves allocated to this matter. The Company stated that the charge does not
affect income from operations for the second quarter of 1996 which it expects
will show improvement as compared to the second quarter of 1995.
ITEM 7. FINANCIAL STATEMENTS, PRO FORM, FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99 Press Release dated May 30, 1996.
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2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
MARGO NURSERY FARMS, INC.
By: /S/ ALFONSO ORTEGA
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Alfonso Ortega
Vice President, Treasurer
and Chief Financial Officer
Date: May 30 , 1996
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EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION PAGE
99 Press Release dated May 30,1996
MARGO NURSERY FARMS INC.
NEWS RELEASE
NASDAQ Symbol: MRGO
FOR IMMEDIATE RELEASE Contacts: Alfonso Ortega
(787) 883-2570
MARGO NURSERY FARMS, INC. ANNOUNCES
SETTLEMENT OF LITIGATION WITH FIRST UNION
NATIONAL BANK OF FLORIDA
VEGA ALTA, PUERTO RICO, May 30, 1996 Margo Nursery Farms, Inc. (NASDAQ Symbol:
MRGO) announced today that the Company, all related entities of the Company and
Michael J. Spector, the Chairman of the Board, Chief Executive Officer and the
principal stockholder of the Company (the "Margo Entities"), have entered into a
Settlement Agreement with First Union National Bank of Florida ("First Union").
The Settlement Agreement covers all claims brought by First Union against the
Margo Entities related to a loan facility obtained by the Margo Entities from
Southeast Bank, N.A. in 1988 and later acquired by First Union. The Settlement
Agreement also settles all counterclaims brought by the Margo Entities against
First Union related to First Union's efforts to collect such loan.
The Settlement Agreement provides for a payment to First Union of $5,625,000, of
which $5,285,000 will be paid by the Company and $340,000 will be paid by Mr.
Spector. The settlement payment being made by the Company, excluding related
costs, will result in a charge of approximately $308,000 (or $0.16 per share) in
the second quarter of 1996, after the application of existing reserves allocated
to this matter. The Company stated that the charge does not affect income from
operations for the second quarter of 1996 which it expects will show improvement
as compared to the second quarter of 1995.
Margo Nursery Farms, Inc. is engaged in the business of growing and distributing
a wide range of both indoor and outdoor tropical foliage and flowering plants in
Miami, Florida and Vega Alta, Puerto Rico.The Company is also engaged in the
sale of lawn and garden products and the provision of landscaping services for
Puerto Rico and the Caribbean.
P.O. BOX 706, DORADO, PUERTO RICO 00646
CARRETERA 690, KM. 5.8 VEGA ALTA, PUERTO RICO 00762
(809) 883-2570 (809) 728-3342
FAX: (809) 883-3244
