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):
May 25, 2000
BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
1-13817 11-2908692
(Commission File Number) (IRS Employer Identification Number)
777 Post Oak Boulevard, Suite 800, Houston, Texas 77056
(Address of Principal Executive Offices and Zip Code)
(713) 621-7911
(Registrant's Telephone Number, Including Area Code)
__________________________
(Former Address)
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ITEM 5. OTHER EVENTS.
Bankruptcy Filing of ITS Supply Corporation
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On May 25, 2000, Boots & Coots International Well Control, Inc. (the
"Company"), announced that one of its wholly-owned subsidiaries, ITS Supply
Corporation ("`ITS''), had filed for protection under Chapter XI of the U.S.
Bankruptcy Code in Corpus Christi, Texas on May 18, 2000. The filing of the ITS
Chapter XI bankruptcy proceedings does not affect the operations of the Company
or any of its other subsidiaries. There exists one subordinated partial
guaranty, issued by the Company, of amounts owing to a portion of one ITS trade
creditor. The $1,500,000 guaranty is subordinated to payment in full of all
senior debt of the Company in accordance with the terms of the subordinated
guaranty. The Company does not presently anticipate paying any portion of that
subordinated guaranty. Boots & Coots has elected to focus its capabilities and
resources, in the current reviving oil and gas sector, on those elements that
are core to its business. ITS expects to file a plan with the court for
reorganization in accordance with time schedules provided for by the bankruptcy
code. ITS' operating subsidiaries are not included in the Chapter XI filing.
Operations of these subsidiaries are not expected to be impacted by the filing.
For the year ended December 31, 1999 (unaudited), ITS had revenues of
approximately $11,300,000 and a net loss of approximately <$1,800,000>. ITS had
losses of approximately <$230,000> for the year ended December 31, 1998. ITS'
outsource purchasing and logistics business unit was severely impacted by the
sharp drop in oil and gas prices and significantly fewer new international
projects in the third quarter 1999, which resulted in reduced demand for ITS'
ongoing services. As of the filing date, ITS had total liabilities of
approximately $7,800,000.
The Company has continued to keep its lenders informed of the circumstances
which resulted in the Chapter XI filing by ITS. The Company is currently in the
process of completing the documentation required for the acquisition by Foothill
Capital Corporation of the existing senior credit indebtedness presently led by
Comerica Bank-Texas, as previously announced.
A copy of the press release issued by the Company is attached as Exhibit
99.1 to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits. The following exhibits are filed herewith:
99.1 Press Release dated May 25, 2000.
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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.
Boots & Coots International Well Control, Inc.
(Registrant)
Date: May 26, 2000 By: /s/ Larry H. Ramming
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Larry H. Ramming
Chief Executive Officer
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