UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 29, 1996
WORK RECOVERY, INC.
(Exact Name of Registrant as Specified in its Charter)
Colorado
(State or Other Jurisdiction of Incorporation)
0-18695 68-0165800
(Commission File Number) (IRS Employer Identification No.)
2341 South Friebus Avenue, Suite 14, Tucson, Arizona 85713
(Address of Principal Executive Offices) (Zip Code)
(520) 322-6634
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changes Since Last Report)
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 3. Bankruptcy and Receivership
On May 29, 1996, Work Recovery, Inc. (the "Registrant") filed
a voluntary Petition for Relief under the provisions of Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the District of Arizona
(Bankruptcy Case No. 96-01640-Tuc-LO). Chapter 11 allows the Registrant to
remain as debtor in possession of its assets and business while being subject to
the supervision and orders of the Bankruptcy Court for certain transactions or
actions.
Each of the following direct or indirect wholly-owned subsidiaries
of the Registrant also filed a voluntary Petition for Relief under the
provisions of Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court for the District of Arizona: Work Recovery Centers, Inc.
EXHIBIT
99.1 - Registrant's press release dated May 29, 1996 announcing Chapter 11
filing.
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.
WORK RECOVERY, INC.
May 29, 1996 By: DORCAS R. HARDY
Dorcas R. Hardy, Acting President and
Acting Chief Executive Officer
FROM: WORK RECOVERY, INC.
2341 South Friebus Avenue
Tucson, AZ 85713
TRADING SYMBOL: WORK CONTACT: Jake Mendoza
TEL: (520) 322-6634
WORK RECOVERY, INC. FILES FOR COURT PROTECTION
Tucson, AZ, May 29, 1996 -- Work Recovery, Inc. (WRI) announced today its
decision to seek court protection from its creditors. The Company's Board of
Directors had authorized management to file for protection pursuant to
Chapter 11 of the U.S. bankruptcy code, if management deemed filing necessary.
Management believed that it was unlikely the Company would be able to continue
day to day operations without the protection of Chapter 11.
Despite the tremendous potential of the ERGOS technology, Work Recovery has
continued to confront an extremely difficult cash flow situation. The
Company sustained significant losses for the fiscal year ended June 30, 1995
and has experienced further material financial and liquidity deterioration
since year end.
Management has indicated the need for outside financing to fund current
negative cash flows from operations and to support its business development
plan over the next 24 months. The TEAM for New Management is continuing
efforts to address financing strategies that would lead to a bridge loan
of $6-10 million. However, legal actions against the Company and other
contingent liabilities have severely limited the Company's ability to obtain
financing outside of Chapter 11 reorganization. Without such loan, Work
Recovery will continue to struggle to meet its obligations and reach its
potential.
Acting President and CEO Dorcas R. Hardy said, "the need for the Company to
continue operating and survive long enough to reach its full potential was the
main factor leading to the decision to seek court protection." Hardy also
said, "We are hopeful that Work Recovery will overcome its stormy past and
continue to be the undisputed leader in the field of functional capacity
assessment and disability evaluation technology."
Work Recovery, Inc. manufactures, markets and licenses objective functional
capacity assessment technology, ERGOS, for the evaluation of injured workers.
