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) December 16, 1998
QUADRAX CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 0-16052 05-0420158
(State or Other Jurisdiction of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
618 MAIN STREET, P.O. BOX 1001, WEST WARWICK, RI 02893-0901
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (401) 683-6600
300 High Point Ave., Portsmouth, RI, 02871
(Former Name or Former Address, If Changed Since Last Report.)
Item 2. Disposition of Assets.
Quadrax Corporation (the "Company") as a debtor under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy Court for the
District of Rhode Island has begun an ongoing process of the disposition of
certain of its assets. The Company began the first phase of this process in
an auction of a portion of its Portsmouth, Rhode Island plant equipment held
on December 10, 1998. A second auction of equipment from the Company's
Vista, California plant was held on December 16, 1998. Equipment sold
includes some of its tape lines used in the manufacturing of raw materials
and office equipment and supplies used by the Company for the development of
thermoplastic sports products and golf shafts. The assets were sold to the
public for an approximate gross consideration of $400,000. The Company
anticipates the process to continue with ongoing sales of the remaining
equipment to occur in the first quarter of 1999. The Company is retaining
core equipment that is required to manufacture its primary thermoplastic
material.
Item 5. Other Events.
On December 28, 1998, in accordance with 11 U.S.C. Section 363, the
Company sold its capital stock in its wholly owned subsidiary, Victel, Inc.
("Victel") to E.B. Acquisition LLC ("EB"). The consideration for the sale of
all right, title and interest of the Company in and to the Victel stock to EB
was $1,000,000. In addition, on December 28, 1998, EB deposited $500,000 in
an escrow account with the Company's outside bankruptcy counsel. The terms
and conditions of the sale and of the escrow arrangement are of public record
in the United States Bankruptcy Court for the District of Rhode Island.
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 thereunto duly authorized.
Quadrax Corporation
December 31, 1998 /s/ James J. Palermo
(Date) James J. Palermo
Chairman and
Chief Executive Officer
