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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: December 11, 2000
THE KUSHNER-LOCKE COMPANY
(Exact name of registrant as specified in its charter)
CALIFORNIA 0-17295 95-4079057
(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification No.)
11601 WILSHIRE BOULEVARD, 21ST FLOOR
LOS ANGELES, CALIFORNIA 90025
(Address of Principal Executive Offices) (Zip Code)
(310) 481-2000
(Registrant's telephone number, including area code)
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Item 5. Other Events.
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On December 8, 2000, The Kushner-Locke Company (the "Company") filed a
borrowing base certificate with The Chase Manhattan Bank under its Credit,
Security, Guaranty and Pledge Agreement, dated as of June 19, 1996, among the
Company, the Guarantors named therein, the lenders named therein and The Chase
Manhattan Bank, N.A., (formerly Chemical Bank) as Agent (the "Agent"), and as
Fronting Bank for the lenders (as such agreement has been amended from time to
time, the "Credit Agreement"). This certificate reports that the Company is
materially over its borrowing limits which would be an event of default under
the Credit Agreement for which the Agent may terminate the Agreement and/or
declare all amounts due and payable thereunder immediately due and payable, and
the Company does not believe its present cash position would enable it to repay
the amounts due. Consequently, the Company will be prohibited from making any
payments to any subordinated creditors under either its 13 3/4% Convertible
Subordinated Debentures or its 8% Convertible Subordinated Debentures, both of
which become due in December 2000. Even if the Company would not be in default
under the Credit Agreement, the Company does not believe that its present cash
position would enable it to make the required payments on the principal amounts
due upon maturity of these debentures. Failure to make these payments when due
would constitute a default of the Company's obligations under these debentures.
SIGNATURE
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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: December 11, 2000 THE KUSHNER-LOCKE COMPANY
By: /s/ DONALD KUSHNER
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Donald Kushner
Co-Chairman of the Board and
Co-Chief Executive Officer
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