SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Act of 1934
Date of Report (Date of earliest event reported): March 16, 2000
Leak-X Environmental Corporation
(Exact name of registrant as specified in its charter)
Delaware 0-17776 23-2823596
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
790 East Market Street, Suite 270, West Chester, Pennsylvania 19382
(Address of principal executive offices) (zip code)
Registrant's Telephone Number, including Area Code: (610) 344-3380
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events
In its Current Report on Form 8-K filed with the Securities and Exchange
Commission on March 16, 2000, Leak-X Environmental Corporation (the
"Company") reported that it was in an over advance position under its Loan
Agreement with its lender, First Union National Bank ("the Bank") by
approximately $101,000. Subsequent to the Company's filing of the foregoing
Form 8-K, the Company received a formal notice from the Bank that the over
advance constitutes an event of default under the Loan Agreement and that all
amounts outstanding under the Note, currently $434,722.69, are immediately due
and payable in full and the Bank has reserved its right, at its option, to
exercise all rights and remedies available to it under the Loan Agreement.
The Company is still trying to secure alternative financing and
negotiate repayment terms of the outstanding balance with the Bank. If the
negotiations for relief with the Bank are unsuccessful and if the Company
cannot meet the Bank's demand for payment by obtaining alternate financing,
the Bank would have the right to commence legal action against the Company for
the repayment of the entire debt and to proceed against the Company's assets.
Such an event would likely prevent the Company from continuing as a going
concern.
SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
The statements contained herein include forward looking statements that
involve a number of risks and uncertainties. In addition to the facts
discussed, among the other factors that could cause actual results to differ
materially are the following: the ability of the Company to negotiate
acceptable repayment terms with the Bank or to obtain alternative financing;
enforcement of environmental regulations; business conditions; and growth in
the industry and general economy; and competitive factors, such as rival
designs and prices; and changes in sales mix.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto
duly authorized.
LEAK-X ENVIRONMENTAL CORPORATION
(Registrant)
Dated: March 17, 2000
By: /s/ Joyce A. Rizzo
Name: Joyce A. Rizzo
Title: Chief Executive Officer
