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) January 29, 1997
Mercury Finance Company
(Exact name of registrant as specified in charter)
Delaware 1-10176 36-3627010
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
100 Field Drive, Lake Forest, Illinois 60045
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 295-8600
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
On January 29, 1997, the registrant issued a press release, a copy of which
is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description of Document
99.1 Press release dated January 29, 1997 issued by the
registrant.
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.
Mercury Finance Company
Date: January 29, 1997 By: /s/ John N. Brincat
John N. Brincat
Its: President
Exhibit 99.1
Mercury Finance Company Announces
Discovery of Accounting Irregularities
CHICAGO, Jan. 29 /PRNewswire/ -- Mercury Finance Company (NYSE:MFN)
(the "Company") announced the discovery of accounting irregularities which
caused an overstatement of the previously released earnings. According to John
N. Brincat, President and Chief Executive Officer, the accounting irregularities
appear to be the result of unauthorized entries being made to the accounting
records of the Company by the Principal Accounting Officer. Based on the
findings and analysis to date, it appears that the previously reported net
income for fiscal years 1993-1996 will be restated as follows:
Previously reported As Restated
Net Income Net Income Net Income Net Income
(millions) Per Share (millions) Per Share
1996 120.7 .70 56.7 .33
1995 98.9 .57 76.9 .44
1994 86.5 .49 83.0 .47
1993 64.9 .37 64.2 .37
As a result of the above adjustments, Shareholders' Equity as of
December 31, 1996, would be reduced from $353 million to $263 million. The
estimated restated amounts are the subject of ongoing analyses. The Company
expects that its independent public accountants will complete the audit for the
1996 fiscal year by March 31, 1997.
The analysis of these irregularities is being hampered by the
disappearance of the Company's Principal Accounting Officer, who has been
relieved of his duties. At the direction of the Board of Directors, a special
committee of the Board is investigating these matters with the assistance of
legal counsel and accounting experts retained by the special committee.
As a result of overstatement of earnings, the Company is in violation
of certain covenants in its debt agreements. The Company is in discussion with
its lenders regarding its borrowing arrangements.
The Company believes that its financial condition remains strong and
will support the Company's continuing operations and plans for future growth.
SOURCE Mercury Finance Company
Contact: Analysts: Joseph Kopec, or
Media: Jim Fitzpatrick, of The Dilenschneider Group,
312-553-0700
