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): June 19, 1998
American Rice, Inc.
(Exact name of registrant as specified in its charter)
Texas
(State or other jurisdiction of incorporation)
0-17039 76-0231626
(Commission File Number) (I.R.S. Employer
Identification No.)
411 N. Sam Houston Parkway E.
Houston, Texas 77060
(Address of Principal (Zip Code)
Executive Offices)
(281) 272-8800
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report
<PAGE>
Item 5. Other Events
American Rice, Inc. issued a press release after the close of business
on Friday, June 19, in part regarding the termination of Gerald D.
Murphy as Chairman and board member of the Board of Directors of the
Company. The information contained in such press release is attached
hereto as Exhibit 99.
Item 7. Financial Statement and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated June 19, 1998.
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.
Date: June 24, 1998 American Rice, Inc.
--------------------
(Registrant)
By: /s/ Joseph E. Westover
----------------------
Joseph E. Westover
Vice President and
Controller
FOR IMMEDIATE RELEASE
For further information, Contact:
Douglas A. Murphy
President and Chief Executive Officer
or
Richard N. McCombs
Executive Vice President
(281) 272-8800
American Rice, Inc. Reports Year-End Reserves
Houston, Texas, June 19--- American Rice, Inc. ("ARI") announced today
that for FY 1998 ending March 31, 1998, it would be writing off certain
unproductive assets on its balance sheet and taking reserves for
restructuring expenses. ARI also announced that Mr. Gerald D. Murphy is
no longer the Chairman and a Director of ARI. The Board of Directors
has not replaced Mr. Gerald Murphy as Chairman yet but is consulting
with shareholders, bondholders and bankers before doing so.
As part of its restructuring plan announced on April 20, 1998, ARI will
be expensing $10.3 million unamortized financing expenses associated
with its $100 million 13% mortgage notes due 2002. ARI is currently in
default on these notes as it has not paid the semi-annual interest
payment due February. In addition, ARI will be taking non-cash reserves
to cover the risks associated with the collectability of the debt owed
ARI by ERLY Industries, the recent $ 7 million judgment (including
interest) against the Company in the Kingwood Lakes South litigation and
is considering additional reserves associated with its restructuring
plan.
Mr. Douglas A. Murphy stated, "These adjustments are necessary in order
for ARI to take the next step in its restructuring process. The Company
has been aggressively implementing its turn-around plan and is
optimistic that it will be reversing the trend of losses very soon. A
great deal of the future success of the Company depends on the
completion of the restructuring steps."
ARI announced on April 20 a restructuring plan to divest certain
divisions and focus selling rice to its core branded markets in the US,
Saudi Arabia and Japan. Major cost reductions are being implemented in
order to reverse the operating losses experienced during the last 12
months.
ARI is listed under the symbol "RICE" on the NASDAQ Small Capitalization
market.
