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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): March 24, 1998
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SPARTA SUSRGICAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-11047 22-2870438
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
Bernal Corporate Park
7068 Koll Center Parkway, Pleasanton, CA 94566
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (510) 417-8812
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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.
The Registrant filed suit in the Superior Court of New Jersey, Law
Division, Atlantic County on February 2, 1998 at Docket No. ATL-L-430-98 against
Registrant's former landlord, River Road Associates, L.P. ("RRA") and RRA's
general partner Jerome Raifman. In this suit Registrant claims that RRA has
breached the lease agreement between it and Registrant respecting property
located in Hammonton, New Jersey due to RRA's failure to maintain and make
repairs to the demised premises. Registrant alleges that because of RRA's
failure to maintain the demised premises that the Registrant could not sublet
such premises and suffered damages as a result. Registrant also alleges that it
has been constructively evicted from the demised premises and that the lease
with RRA is therefore terminated.
On March 2, 1998, RRA instituted proceedings to enforce a confession of
judgment against the Registrant in the approximate amount of 4361,400 for unpaid
rent and other charges allegedly due under the lease through the end of the
lease term in May, 2000. The Registrant intends to vigorously oppose this action
by RRA and will seek to consolidate these proceeds with the original suit
initiated by the Registrant.
Any adverse ruling in the claim made by RRA against the Registrant is
likely to have a significant material adverse effect on the financial condition
of the Registrant. The Company's current operations continue to be cash flow
negative, further straining the Company's working capital resources. In the
event of such an adverse ruling, it will be necessary for the Company to obtain
additional working capital from either debt or equity sources. If the Company is
unable to obtain such additional working capital, it may be necessary for the
Company to restructure its operations to reduce its ongoing expenditures.
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, hereto duly authorized.
SPARTA SURGICAL CORPORATION
(Registrant)
/s/ Thomas F. Reiner, President
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Chief Executive Officer and
Chairman of the Board
Dated: March 24, 1998
