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) July 15, 1998
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 3. Bankruptcy or Receivership.
On July 15, 1998, Mercury Finance Company, a Delaware corporation
("Mercury"), filed a voluntary petition for relief in connection with its Plan
of Reorganization under Chapter 11 of Title 11 of the United States Code (the
"Bankruptcy Code") in the United States Bankruptcy Court for the Northern
District of Illinois, which has been assigned to the Honorable Erwin I. Katz,
U.S. Bankruptcy Judge, Case Number 21816 (the "Voluntary Case"). The filing and
Plan of Reorganization conform to the terms agreed upon between Mercury and
substantially all of its lenders as announced on May 15, 1998. The previously
announced involuntary case, Case No. 98-20763, which was filed on July 6, 1998
by several litigants in Mercury's pending securities lawsuits and for which no
order for relief was granted, was consolidated with the Voluntary Case. The
Voluntary Case shall proceed under Case No. 98-20763.
On July 15, 1998, Mercury issued a press release with respect to the filing
of the Voluntary Case. A copy of the press release is attached hereto as
Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
Mercury continues to operate its business as a debtor-in-possession under
the Bankruptcy Code.
Item 7. Financial Statements and Exhibits.<PAGE>
(c) Exhibits.
Exhibit No. Description of Document
99.1 Press release dated July 15, 1998 issued by Mercury.
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: July 22, 1998 By: /s/ William A. Brandt Jr.
----------------------------
William A. Brandt Jr.
Its: President/Chief Executive Officer<PAGE>
Exhibit 99.1
FOR IMMEDIATE RELEASE
MEDIA CONTACT:
Jim Fitzpatrick
The Dilenschneider Group
312-553-0700
MERCURY FINANCE FILES RESTRUCTURING PLAN,
VOLUNTARY CHAPTER 11 PETITION
DAY-TO-DAY OPERATIONS NOT AFFECTED
CHICAGO, July 15, 1998 Mercury Finance Company (OTC BB: MFNNQ) announced
that it has filed its previously disclosed prestructured plan of
reorganization with the federal bankruptcy court along with a voluntary
chapter 11 petition.
"The restructuring plan, which was filed with the United States
Bankruptcy Court for the Northern District of Illinois earlier today,
conforms to the terms of agreement between Mercury and substantially all
of its lenders that was publicly announced on May 15th of this year," said
William A. Brandt, Jr., president and chief executive officer of Mercury.
"By significantly reducing the debt of the company, the plan will provide
Mercury with a sound financial platform from which to operate the business
and return to profitability."
The company's day-to-day operations are not affected by the filing.
Mercury will continue to conduct business as usual and will pay all trade
debt and dealer contracts in the ordinary course without interruption.
The company is current with its trade creditors and has complied with all
payment obligations under its forbearance agreements with its lenders.
The chapter 11 case pertains only to the parent company and not to
Mercury's operating subsidiaries, which conduct the company's business
operations.
-more-
"SAFE HARBOR" STATEMENT UNDER THE SECURITIES LITIGATION REFORM ACT OF
1995: This news release contains certain forward-looking statements
pertaining to a voluntary bankruptcy petition, the outcome of the
company's agreement with certain lenders, the outcome of a reorganization
plan filed with the bankruptcy court, future operations and other matters.
These statements are subject to uncertainties and other factors. Should
one or more of these uncertainties or other factors materialize, or should
underlying assumptions prove incorrect, actual events or results may vary
materially from those anticipated. Such uncertainties and other factors
include the outcome of negotiations with the company's lenders with
respect to the plan or reorganization and other documents related thereto,
approval by the Bankruptcy Court, objections of third parties, as well as
the company's ability to acquire finance receivables on terms it deems
acceptable, changes in the quality of finance receivables, trends in the
automobile and finance industries, and general economic conditions. The
company undertakes no obligation to update any such factor or to publicly
announce the results of any revisions to any forward-looking statements
contained herein to reflect future events or developments.
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