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 6, 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 5. Other Events.
On July 8, 1998, the Registrant issued a press release with respect to an
involuntary petition (the "Petition") for a Chapter 11 bankruptcy proceeding
filed in the U.S. Bankruptcy Court for the Northern District of Illinois on July
6, 1998, by several litigants in the Registrant's pending securities lawsuits.
A copy of the press release and the Petition are attached hereto as Exhibit 99.1
and Exhibit 99.2, respectively, to this Form 8-K and are incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description of Document
99.1 Press release dated July 8, 1998 issued by the
Registrant.
99.2 Involuntary Petition filed in the United States
Bankruptcy Court for the Northern District of Illinois
dated July 6, 1998.
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 10, 1998 By: William A. Brandt, Jr.
Its: President/C.E.O.
Exhibit 99.1
FOR IMMEDIATE RELEASE
Media contact:
Jim Fitzpatrick
The Dilenschneider Group
312-553-0700
MERCURY FINANCE REAFFIRMS INTENT
TO FILE RESTRUCTURING PLAN
CHICAGO, July 8, 1998 - Mercury Finance Company said today that the Company is
on track to file its prestructured plan of reorganization in the Federal
bankruptcy court in mid-July as previously announced.
Mercury's statement comes after the Company was advised that several of the
litigants in the pending securities lawsuits had resorted to the filing of a
petition in the U.S. Bankruptcy Court for the Northern District of Illinois on
July 6 asking the court to place the Company into a Chapter 11 proceeding. The
Company has 20 days to file a response with the court. Mercury, which conducts
its business operations through wholly owned subsidiaries, said that none of the
subsidiaries were named in the petition.
"The action of the securities litigants does not alter our intent to file
the previously disclosed prestructured plan of reorganization," said William A.
Brandt, Jr., Mercury's president and chief executive officer. "Mercury has
remained current with its trade creditors and has complied with all payment
obligations due under its forbearance arrangements with its lenders. We
continue to believe that the prestructured plan, as earlier announced by
Mercury, will provide the Company with a sound financial platform from which to
operate its business and return to profitability."
-more-
"SAFE HARBOR" STATEMENT UNDER THE SECURITIES LITIGATION REFORM ACT OF
1995: This news release contains certain forward-looking statements
pertaining to an involuntary bankruptcy petition, the outcome of the
company's agreement with certain lenders, 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 of 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.
Exhibit 99.2
UNITED BANKRUPTCY COURT INVOLUNTARY
Northern District of Illinois PETITION
IN RE: (Name of debtor - if individual, enter ALL OTHER NAMES used by
Last, First Middle) debtor in the last 6 years
(include married, maiden,
MERCURY FINANCE CO. and trade names)
SOC SEC/TAX ID NO (If more than one, state all)
36-3627010
STREET ADDRESS OF DEBTOR (No and street, city MAILING ADDRESS OF DEBTOR
state and zip code) (if different from street
address)
100 FIELD DRIVE
LAKE FOREST, IL 60045
COUNTY OF RESIDENT/BUSINESS: LAKE
COUNTY OF
RESIDENCE/BUSINESS
LOCATION OF PRINCIPAL ASSETS OF BUSINESS DEBTOR (if other than previously
listed addresses)
NOT APPLICABLE
CHAPTER OF BANKRUPTCY CODE UNDER WHICH PETITION IS FILED
/ / Chapter 7 /X/ Chapter 11
INFORMATION REGARDING DEBTOR (Check applicable boxes)
Petitioners believe TYPE OF
/ /Debts are primarily consumer DEBTOR /X/Corporation
debts / /Indivi- Publicly
/X/Debts are primarily business dual Held
(Complete Sections A and B / /Partner- / /Corporation
ship Not
/ /Other Publicly
Held
A. TYPE OF BUSINESS (Check one box) B. BRIEFLY DESCRIBE
NATURE OF BUSINESS
SUB-PRIME AUTO
/ /Profes- / /Transpor- / /Commodity LENDER AND HOLDING
sional tation Broker COMPANY
/ /Retail/ / /Manufacturing/ / /Construc-
Wholesale Mining tion
/ /Railroad /X/Other / /Real Estate
/ /Stockbroker
VENUE
/X/ Debtor has been domiciled or has had a residence, principle place of
business, or principle assets in the 180 days immediately preceding the
date of this petition or for a longer part of such 180 days in any other
District.
/ / A Bankruptcy case concerning debtor's affiliate, general partner or
partnership is pending in this District.
PENDING BANKRUPTCY CASE FILED BY OR AGAINST ANY PARTNER
OR AFFILIATE OF THIS REPORT (Report information for any additional cases on
attached sheets)
Name of Debtor Case Number Date
Relationship District Judge
ALLEGATION COURT USE ONLY
(Check applicable boxes)
1. /X/ Petitioner(s) are eligible to file
this petition pursuant to 11 U.S.C.
section303(b).
2. / / The debtor is a person against whom
an order for relief may be entered
under title 1 of the United States
Code.
3.a. /X/ The debtor is generally not paying
such debtor's debts as they become
due, unless such debts are the
subject of a bona fide dispute.
or
b. / / Within 120 days preceding the
filing of this petition, a
custodian, other than a trustee,
receiver, or agent appointed or
authorized to take charge f less
than substantially all of the
property of the debtor for the
purpose of enforcing a lien against
such property was appointed or took
possession.
Name of Debtor
Mercury Finance Co.
Case No.
(Court use only)
TRANSFER OF CLAIM
/ / Check this box if there has been a transfer of any claim against the
debtor by or to any petitioner. Attach all documents evidencing the
transfer and any statements that are required under Bankruptcy Rule
1003(a).
REQUEST FOR RELIEF
Petitioner(s) request that an order for relief be entered against the debtor
under the chapter of title 11, United States Code, specified in this petition.
Petitioner(s) declare under penalty of perjury that the foregoing is true and
correct according to the best of their knowledge, information, and belief.
X /s/ James C. Herrick, Jr. X
Signature of Petitioner or Signature of Attorney
Representative (State title)
Richard D. Holper
James C. Herrick, Jr. Name of Attorney Firm (if any)
Name of Petitioner
11811 N. Tatum Blvd., Ste 3031
101 Wisconsin Phoenix, AZ 85028
American Dr. Address
Name & Mailing P.O. Box 1438
Address of Individual Fond du Lac, WI (602) 953-6650
54936 Telephone No.
Signing in Representative
Capacity
X X
Signature of Petitioner or Signature of Attorney
Representative (State title)
Richard D. Holper
Creditor #2 Nicholas P. & Name of Attorney Firm (if any)
Karen K. Barba
Name of Petitioner 11811 N. Tatum Blvd., Ste 3031
Phoenix, AZ 85028
Nicolas & Karen Address
Barba
Name & Mailing 401 N. Northwest (602) 953-6650
Address of Individual Hwy. Telephone No.
Park Ridge, IL
60068-3254
Signing in Representative
Capacity
X X
Signature of Petitioner or Signature of Attorney
Representative (State title)
Richard D. Holper
Creditor #3 Wisconsin American Mutual Name of Attorney Firm (if any)
Insurance Company
Name of Petitioner 11811 N. Tatum Blvd., Ste 3031
Phoenix, AZ 85028
Wisconsin Address
American Mutual
Insurance Company (602) 953-6650
101 Wisconsin Telephone No.
American Drive
Name & Mailing P.O. Box 1438
Address of Individual Fond du Lac, WI
54936
Signing in Representative
Capacity
Name of Debtor
Mercury Finance Co.
Case No.
(Court use only)
TRANSFER OF CLAIM
/ / Check this box if there has been a transfer of any claim against the
debtor by or to any petitioner. Attach all documents evidencing the
transfer and any statements that are required under Bankruptcy Rule
1003(a).
REQUEST FOR RELIEF
Petitioner(s) request that an order for relief be entered against the debtor
under the chapter of title 11, United States Code, specified in this petition.
Petitioner(s) declare under penalty of perjury that the foregoing is true and
correct according to the best of their knowledge, information, and belief.
X X
Signature of Petitioner or Signature of Attorney
Representative (State title)
Heins, Mills & Olson, P.L.C.
Minnesota State Board of Investment Name of Attorney Firm (if any)
Name of Petitioner
700 Northstar East
Howard J. Bicker 608 Second Avenue South
Executive Minneapolis, MN 55402
Director Address
Name & Mailing 55 Sherburne
Address of Individual Ave. (612) 338-4605
St. Paul, MN Telephone No.
55155
Signing in Representative
Capacity
X /s/ Nicholas P. Barba / X
Karen K. Barba Signature of Attorney
Signature of Petitioner or
Representative (State title) Cohen, Milstein, Hausfeld & Toll
Name of Attorney Firm (if any)
Creditor #2 Nicholas P. &
Karen K. Barba 1100 New York Ave., N.W.
Name of Petitioner West Tower, Suite 500
Washington, D.C. 20005
Nicolas & Karen Address
Barba
Name & Mailing 401 N. Northwest (202) 408-4600
Address of Individual Hwy. Telephone No.
Park Ridge, IL
60068-3254
Signing in Representative
Capacity
X X
Signature of Petitioner or Signature of Attorney
Representative (State title)
La Follette & Sinykin
Creditor #3 Wisconsin American Mutual Name of Attorney Firm (if any)
Insurance Company
Name of Petitioner One East Main Street, Suite 500
Madison, WI 53701-2719
Wisconsin Address
American Mutual
Insurance (608) 257-3911
Company Telephone No.
101 Wisconsin
American Drive
Name & Mailing P.O. Box 1438
Address of Individual Fond du Lac, WI
54936
Signing in Representative
Capacity
Name of Debtor
Mercury Finance Co.
Case No.
(Court use only)
TRANSFER OF CLAIM
/ / Check this box if there has been a transfer of any claim against the
debtor by or to any petitioner. Attach all documents evidencing the
transfer and any statements that are required under Bankruptcy Rule
1003(a).
REQUEST FOR RELIEF
Petitioner(s) request that an order for relief be entered against the debtor
under the chapter of title 11, United States Code, specified in this petition.
Petitioner(s) declare under penalty of perjury that the foregoing is true and
correct according to the best of their knowledge, information, and belief.
X X /s/ Richard D. Holper
Signature of Petitioner or Signature of Attorney
Representative (State title)
Richard D. Holper
James C. Herrick, Jr. Name of Attorney Firm (if any)
Name of Petitioner
11811 N. Tatum Blvd., Ste 3031
101 Wisconsin Phoenix, AZ 85028
American Dr. Address
Name & Mailing P.O. Box 1438
Address of Individual Fond du Lac, WI (602) 953-6650
54936 Telephone No.
Signing in Representative
Capacity
X X /s/ Richard D. Holper
Signature of Petitioner or Signature of Attorney
Representative (State title)
Richard D. Holper
Creditor #2 Nicholas P. & Name of Attorney Firm (if any)
Karen K. Barba
Name of Petitioner 11811 N. Tatum Blvd., Ste 3031
Phoenix, AZ 85028
Nicolas & Karen Address
Barba
Name & Mailing 401 N. (602) 953-6650
Address of Individual Northwest Hwy. Telephone No.
Park Ridge, IL
60068-3254
Signing in Representative
Capacity
X X /s/ Richard D. Holper
Signature of Petitioner or Signature of Attorney
Representative (State title)
Richard D. Holper
Creditor #3 Wisconsin American Mutual Name of Attorney Firm (if any)
Insurance Company
Name of Petitioner 11811 N. Tatum Blvd., Ste 3031
Phoenix, AZ 85028
Wisconsin Address
American Mutual
Insurance (602) 953-6650
Company Telephone No.
101 Wisconsin
American Drive
Name & Mailing P.O. Box 1430
Address of Individual Fond du Lac, WI
54936
Signing in Representative
Capacity
Name of Debtor
Mercury Finance Co.
Case No.
(Court use only)
PETITIONING CREDITORS
Name and Address of Nature of Claim Amount of Claim
Petitioner
Securities fraud and $45,625.00
James C. Herrick, Jr. other claims set forth
101 Wisconsin American Dr. in the certain Amended
P.O. Box 1438 Complaint dated
Fond du Lac, WI 54936 April 17, 1998
Name and Address of Nature of Claim $20,140.00
Petitioner
Creditor #2 Securities fraud and
other claims set forth
Nicolas P. & Karen K. Barba in the certain Amended
401 N. Northwest Hwy. Complaint dated
Park Ridge, IL 60068-3254 April 17, 1998
Name and Address of Nature of Claim $46,125.00
Petitioner
Creditor #3 Securities fraud and
other claims set forth
Wisconsin American Mutual in the certain Amended
Insurance Company Complaint dated
101 Wisconsin American Drive April 17, 1998
P.O. Box 1438
Fond du Lac, WI 54936
Total Amount of
Petitioners Claims
* Additional Counsel for $111,890.00
Petitioners
Gould & Ratner Gould & Ratner
222 N. LaSalle, Ste 800 222 N. LaSalle, Ste 800
Chicago, Il 60601 Chicago, Il 60601
(312) 236-3003 (312) 236-3003
LaFollette & Sinykin Cohen Milstein Hausfeld & Toll
One E. Main, Ste 500 1100 New York Ave. NW
P.O. Box 2719 West tower, Ste 500
Madison, WI 53701-2719 Washington, D.C. 20005
(608) 257-3911 (202) 408-4600
Miner Barnhill & Galland P.C. Heins Mills & Olson, P.L.C.
44 East Mifflin, Ste 803 700 Northstar East
Madison, WI 53703 608 Second Ave. S.
(608) 255-5200 Minneapolis, MN 55402
(612) 338-4605
Heins Mills & Olson, P.L.C. For Petitioners: Nicholas P. and
700 Northstar East Karen Barba
608 Second Ave. S.
Minneapolis, MN 55402
(612) 338-4605
For Petitioners:
Wisconsin American Mutual
Insurance Company
James C. Herrick, Jr.
