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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): September 27, 1996
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Choices Entertainment Corporation
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Exact Name of Registrant as Specified in Charter)
Delaware 0-17001 52-1529536
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(State or Other Jurisdiction (Commission (IRS Employer
Of Incorporation) File Number) Identification No.)
836 West Trenton Avenue, Morrisville, Pennsylvania 19067
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 428-1000
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On September 18, 1996, a lawsuit was filed against the Company in the Court
of Common Pleas of Bucks County, Pennsylvania, captioned MAX SCHEURER V. CHOICES
ENTERTAINMENT CORPORATION, Civil Action No. 96006871, in which plaintiff is
seeking a judgment in the amount of $146,298 (plus future interest, costs and
any other appropriate damages), which amount represents $120,000 of principal
and $26,298.35 of interest owed by the Company to plaintiff under two 10%
promissory notes, on which the Company is, as previously reported, in default.
The Company was served with the complaint on September 27, 1996. The aforesaid
principal amount was reduced to $120,000 from $150,000 as a result of a $30,000
payment made by the Company on November 30, 1995, in response to a previous
lawsuit filed by plaintiff seeking collection of said notes. In connection with
such payment, plaintiff discontinued the previous lawsuit without prejudice and
agreed not to reinstate it for any remaining balance owing on the notes prior to
March 15, 1996. Since that time, the Company has made payments to plaintiffs
totaling $3,988.74.
The Company is seeking to negotiate a settlement of this claim on a basis
that will not materially and adversely impair its operations, although there is
no assurance that it will be able to reach a satisfactory settlement with
plaintiff. In the event that the Company is unable to resolve this claim on
favorable terms and a judgment is entered and enforced against the Company, the
Company's business will be materially and adversely affected and the Company
could be forced to seek protection under Chapter XI of the Federal Bankruptcy
Laws.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CHOICES ENTERTAINMENT CORPORATION
(Registrant)
Date: October 4, 1996 By:/s/ Ronald W. Martignoni
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Ronald W. Martignoni
Chief Executive Officer
