SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported) July 20, 1998
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NAL Financial Group Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-25476 23-2455294
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(State or other (Commission (I.R.S. Employer
jurisdiction) File Number) Identification No.)
500 Cypress Creek Road West
Suite 590
Fort Lauderdale, Florida 33309
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (954) 938-8200
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Not Applicable
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(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS
As previously reported, NAL Financial Group Inc. and six of its subsidiaries and
affiliates, including NAL Acceptance Corporation, filed for bankruptcy under
Chapter 11 of the Bankruptcy Code on March 23, 1998. As a result of extensive
negotiations with several lenders and its majority shareholder, the Company and
other debtors filed a Disclosure Statement and Plan of Reorganization
(collectively the "Plan") with the U.S. Bankruptcy Court in and for the Southern
District of Florida on July 20, 1998. The Plan provides that upon becoming
effective, Conseco, Inc. (the parent of the Company's majority shareholder) and
Greenwich Capital Markets, Inc., shall each contribute new value to the Company
in the form of cash and working capital lines of credit to provide available
cash of approximately $6 Million. Upon the effective date of the reorganization,
Conseco will subordinate any and all of its unsecured claims against the Company
to the claims of the unsecured creditors and certain debt of the Company to
Conseco will remain on the Company's books and records. In exchange for the new
value given to the Company, all of the existing common stock of the Company will
be extinguished and the Company will issue new shares of common stock,
designated as Class A and Class B. Conseco will be issued 100% of the Class A
stock and 80% of the Class B stock. The balance of the Class B stock will be
issued to Greenwich.
The Plan further provides that Debtors will pay $2.03 Million to the
unsecured creditors in satisfaction of their claims against the Company. This
represents approximately 42% of the value of the claims presently filed against
the Company by these creditors.
Upon confirmation of the Plan, the Company, and two of its subsidiaries,
NAL Acceptance Corporation and Autorics, Inc. will emerge from bankruptcy. The
Company will own all of the stock of NAL Acceptance Corporation and Autorics,
Inc., and will continue to operate as a loan servicing company in the non prime
automobile finance industry.
Interested parties will have the opportunity to file their objections to
the proposed Plan pursuant to a schedule to be established by the court at a
hearing to be held in Ft. Lauderdale on August 10, 1998. Confirmation of the
Plan is expected on or about September 24, 1998.
All interested parties are directed to the Disclosure Statement and the
Plan of Reorganization filed with the Court in Case Nos. 98-21966-BKC-PGH
through 98-21972-BKC-PGH for all terms and conditions concerning the
reorganization of the Company and its effect on shareholders' interest therein.
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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.
NAL FINANCIAL GROUP, INC.
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(Registrant)
Date July 20, 1998 By: /s/ Mercedes Padin
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Mercedes Padin, Vice President-
General Counsel
